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Central Bank of Azerbaijan recommends that local banks reconsider their strategies

Business Materials 29 April 2013 16:13 (UTC +04:00)

Azerbaijan, Baku, April 29 / Trend, A. Akhundov /

The Azerbaijani Central Bank recommends that local banks review their business strategies for the post-crisis period, CBA Director General Rashad Orujov said at the 2013 Baku financial summit today.

"Presently, the banking sector is undergoing a period of transformation worldwide, including in Azerbaijan," he said. "Shareholders and managers of banks must review their strategies under these circumstances because today, optimization of the ratio of income and risks is very important. If this ideal is compromised, it could lead to negative consequences for banks."

He said that the financial state of banks depends on how efficiently business is done. The banks must use new technologies and innovation in their work by increasing the effectiveness of their operations.

"The banks must open not only new sales channels," he said. "It is necessary to actively use these channels. It is necessary to expand the use of mobile and internet banking. In these areas, the banks face many challenges. They will have a lot of work."

He stressed that the banks must think about how to make their products more available to the public.

"The matter rests not only in cost reduction, but also in simplifying access and increasing the quality of services," he said. "The banks must rethink their role in financing the economy and its social functions. Investment products must be developed for the public."

The forum was organized by Yapı Kredi Azerbaijan, the Azerbaijan Bank Training Centre (ABTC) and the Azerbaijan Diplomatic Academy.

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