Azerbaijan should develop inter-bank loan market to protect from foreign shocks
Azerbaijan, Baku, March 15 / Trend A. Akhundov /
It is important to maintain and develop the inter-bank loan market for the Azerbaijani banking sector in Azerbaijan, as well as to protect it from external shocks, Baku Interbank Currency Exchange (BBVB) adviser Zahid Mammadov said.
"As it is known, the market of inter-bank loans in the developed market economy is one of the most important sectors of the financial market," he said. "At present, this segment of the money market needs further development in terms of the global financial crisis."
He said inter-bank loans were the main source of credit resources for most banks in the beginning of establishing the banking system. Banks with a solid customer base or banks with a sound credit policy have free credit resources.
Receiving profit from the placement of temporarily free funds on the inter-bank lending market is secondary, as the maintenance of liquidity will always be an urgent issue for banks, he said.
"It is natural that the role of the national inter-bank credit for our banks greatly increased during a recession that covered most countries," he said. "Therefore, it is for the Azerbaijani banking sector to maintain and develop this market, including protection from