Mandate of Azerbaijan Deposit Insurance Fund may be expanded
Azerbaijan, Baku, Aug.15 /Trend A.Akhundov/
The mandate of the Azerbaijan Deposit Insurance Fund (ADIF) can be expanded, executive director of ADIF Azad Javadov told Trend on Wednesday.
"In developed countries, similar funds have more powers. ADIF development in the future includes a number of issues, for example, various systems for risk assessment of banks in collecting calendar payments," Javadov said.
Issue of insurance of bank deposits of individual entrepreneurs, small and medium-sized enterprises and investors in addition to the contributions of individuals is on the agenda.
"The application of relevant measures on improvement during the liquidation of banks is also topical," Javadov said.
August 13 marks the 5th year of ADIF activity.
"For five years, the foundation was formed institutionally; all procedures to complete the work have been established. Bankruptcy of Royal Bank showed that the ADIF is ready to perform its functions. Two objectives were pursued during the creation of the fund - support of the stability of the banking system of Azerbaijan and protection of the interests of depositors. Recent events have shown that the fund copes with its functions," Javadov said.
Since Aug.1 ADIF started to pay compensations through three agent banks to depositors of the bankrupt Royal Bank. the fund plans to pay about 16 million manat, that is one-third of its funds (currently the fund has 48 million manat).
Official exchange rate on Aug.15 is 0.7855 AZN/USD