Consolidation of banks will continue in Azerbaijan in the medium term
Azerbaijan, Baku, Oct. 23 / Trend A. Akhundov /
The continued capitalisation and consolidation processes in the Azerbaijani banking sector is one of the priority directions of the banking system development for 2014-2017, the draft concept of socio- economic development for these years, included in the budget package for 2014, revealed today.
According to a decision of the Azerbaijani Central Bank, the minimum amount of the total capital for the country's banks will be increased from 10 million manat to 50 million manat as from January 1, 2014.
Moreover, priorities include the completion of the corporate unit and improvement of the management system, expanding people and regional opportunities for the banking services, improvement and enhancement of payment systems.
Also included are the expansion of financial instruments and promotion in accordance with the requirements for the capitalisation of the economy of new mechanisms and institutions for obtaining financial resources, the acceleration of this process especially in the regions and the expansion of mortgage lending, as well as a network of non-bank credit and other microfinance organisations.
There are 43 banks, 30 non-bank credit organisations and more than 100 credit unions in Azerbaijan.
The official exchange rate is 0,7844 AZN/USD on Oct. 23.