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Azerbaijan’s Central Bank proposes to create mechanisms for restructuring banking sector

Business Materials 29 December 2017 09:42 (UTC +04:00)
The Central Bank of Azerbaijan (CBA) has announced the need to create special mechanisms for restructuring the banking sector, the CBA said in the statement on the main directions of the monetary policy for 2018 and the medium-term period, published on its website Dec. 29
Azerbaijan’s Central Bank proposes to create mechanisms for restructuring banking sector

Baku, Azerbaijan, Dec. 29

By Azad Hasanli – Trend:

The Central Bank of Azerbaijan (CBA) has announced the need to create special mechanisms for restructuring the banking sector, the CBA said in the statement on the main directions of the monetary policy for 2018 and the medium-term period, published on its website Dec. 29.

The CBA will continue to address the problem of non-performing loans, restore and strengthen the financial stability of banks.

"The program for restructuring the banking sector must be supported by complimentary measures to regulate non-performing debts,” the CBA said. “In this regard, special mechanisms must be prepared taking into account the international experience, peculiarities and limitations of the country."

“Such an integrated approach will strengthen the banks' capital position, expand healthy lending, increase credit activity and ensure economic growth," the CBA said.

According to the CBA, it is necessary to continue the work on eliminating existing restrictions and reducing risks to intensify financial mediation in the ecosystem in which banks are operating.

“Besides the mentioned factors, it is necessary to create conditions for lending existing financial resources at such a level at which the banking sector, taking into account the risks, is able to accept them,” the CBA said.

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