Reason for increase of maximum interest rate on insured deposits in Azerbaijan revealed
Baku, Azerbaijan, Feb. 24
By Maksim Tsurkov - Trend:
Increasing the maximum interest rate on insured deposits by the Azerbaijan Deposit Insurance Fund of individuals (ADIF) is a response to market dynamics, the executive director of Azerbaijan Deposit Insurance Fund of individuals (ADIF) Azad Javadov told Trend Feb.24.
Starting from February 24, the Azerbaijan Deposit Insurance Fund (ADIF) increased the maximum level of interest rate on insured deposits from 9 to 12 percent.
He said that the decision is a response to the processes that have been observed in the last quarter of 2014 on the deposits market.
"The last quarter of 2014 showed that the number of non-insured deposits greatly increased," said Javadov. "Perhaps this is due to the fact that the average interest rates on deposits in the country increased. In this regard, we have decided to increase the maximum rate to 12 percent."
The average rate on deposits in manats in December 2014 amounted to 8.86 percent, in dollars - 9.24 percent, in November 2014 - 8.78 percent and 9.37 percent, in October 2014 - 8.77 percent and 8.91 percent, respectively, according to the CBA.
The average rate on deposits of individuals in national currency amounted to 9.45 percent in December 2014, in foreign currency - 9.78 percent, in November 2014 - 9.45 percent and 9.78 percent, in October 2014 - 9.39 percent and 9.93 percent, respectively.
The total volume of deposits of individuals in the banking system of Azerbaijan as of January 1, 2015 was 7.188 billion manats, including the deposits in the national currency - 4.422 billion manats. During the fourth quarter, the deposits grew by 3.3 percent, in the national currency - by 0,029 percent and in foreign currency - by 8.96 percent.
ADIF started operating on August 13, 2007. At present, 43 of the 45 banks operating in the country are members of the fund.
Edited by CN
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