Azerbaijan to have new regulatory framework for financial markets (UPDATE)
Details added (first version posted on 15:49)
Baku, Azerbaijan, Nov. 24
By Azad Hasanli – Trend:
In 2018, it is expected to adopt a law on regulating and supervising financial markets in Azerbaijan, Nurlan Babayev, head of Legal and Methodology Department of the Financial Market Supervisory Authority of Azerbaijan (FIMSA) said Nov. 24.
Babayev said that the FIMSA expects to submit the corresponding draft law for discussion at the autumn session of the Azerbaijani Parliament next year.
He noted that this law will make possible to create single legal framework to regulate financial markets, implement preventive measures, as well as regulate the sphere of payment systems and much more.
“In essence, this law will shape the future appearance of Azerbaijan’s financial markets,” Babayev added.
Speaking of the advantages of the new law, Babayev noted that after its adoption, the FIMSA will be able to switch to risk-based supervision.
That is, if currently, the FIMSA can take some measures only after deterioration of the situation in a bank, after the adoption of the law, it will become possible to take measures even before the situation in a bank deteriorates, for example, when capital position and overall situation in a bank are normal, but stress tests and trends in the economy give reason to believe that the bank’s further situation will worsen, he added.