NATIONAL BANK TOOK A DECISION ON DOUBLE INCREASE OF REQUIREMENTS TO THE MINIMAL STATUTORY CAPITAL OF NEW BANKS AS OF 1 JANUARY
The National Bank of Azerbaijan (NBA) took a decision on double increase of requirements to the minimal statutory capital of new banks. As of 1 January 2006, requirements to the new banksвЂ™ capital will be increased up to 50 billion manats, Trend has been told at the NBA. For the moment this level is 25 billion manats.
The NBA Board has also taken a decision on conformity to standards of the minimal consolidated capital of the operating banks during 2006-2007 to the new banksвЂ™ statutory capital.
On 3 May 2004 the National Bank approved the schedule of the requirements increase to the minimal volume of capitals, having decided that the requirements will be claimed not to the statutory, but to the consolidated capital: 1 January 2005 - $3,5 million, 1 January 2006 - $
5 million. At the NBA estimation, among the 42 operating in the country banks, capitals of 17 of them exceed $5 million.
The NBA also noted, that it constantly initiates strengthening of the banks capital base, as one of the strategic targets in the banking system development. "Well capitalized banking system is able to actively and flexibly support the economic development by way of maximal mobilizing of internal revenuesвЂќ, the relevant NBA report notes.
The great oil revenues inflow in the country, the efficient transforamtion of these funds by means of financial and banking systems in the development of the non-oil sector makes important the banking systemвЂ™s strict capitalization.