No need for banking codex in Azerbaijan- Elman Rustamov

Business Materials 21 April 2006 15:47 (UTC +04:00)

There is no need today uniting two or several banking laws into single banking codex, the ruling chairman of the National Bank of Azerbaijan (NBA), Elman Rustamov told Trend.

The given process won` t increase the effectiveness, rather creating the air of instability in the banking sector, he surmised. Stability of legislature is one of the most important factors in the development of areas it tries to control. Accordingly, changes will not serve the interests of the banking sector development


Lack of necessity in adopting the Banking codex also comes from the fact that for the last 10 years there have been 3 generations of laws in the banking area- more than in any other sector, he stressed.

The National Bank is now actively participates in the Bazel-P standards discussions with the Bazel committee, however, they were not yet adopted even by the most developed countries, with the far more advanced banking sector. Thus, Azerbaijan may adopt Bazel- P only after it will be installed in other developing countries. This may require introducing some changes in the existing banking legislature in the country (draft law on banks).