Azerbaijan should quit insuring population’s deposits (UPDATE)
(Details added, first version posted at 14:29)
Baku, Azerbaijan, Nov. 24
By Anvar Mammadov – Trend:
Azerbaijan should quit insuring deposits of population, said Rufat Aslanli, chairman of the Board of Directors of the Financial Market Supervisory Authority.
Aslanli made the remarks during a banking conference in Baku Nov. 24.
Over the 10 years of its existence, the Azerbaijan Deposit Insurance Fund (ADIF) has been able to accumulate funds worth 140 million manats, which does not even account for 10 percent of the insured deposits, according to him.
In order to provide the ADIF with funds, a mechanism was developed for its crediting by the Central Bank of Azerbaijan (CBA), Aslanli said.
He added that the mechanism was successfully tested during the repayment of deposits to the Bank Standard’s clients.
The ADIF is currently paying compensations to depositors of the liquidated Dekabank, Kredobank, Zaminbank, Parabank, Caucasus Development Bank, AtraBank, Bank of Azerbaijan, Ganjabank, Texnikabank and Bank Standard.