Trio of institutional development of Azerbaijani banking system

Trio of institutional development of Azerbaijani banking system

Azerbaijan, Baku, Oct. 24 / Trend /

Trend Agency analytic centre head Ellada Khankishiyeva

The main trend in the institutional development of the Azerbaijani banking system in the near future is functioning of the universal banks, offering an ever-expanding range of products and services.

Thus, the Central Bank of Azerbaijan (CBA) will focus on the institutional development of the banking sector in 2012, Director General of the CBA Rashad Orujov told journalists.

Orujov identified three main directions of institutional development for the next year - improving corporate governance, risk management, introducing information technologies in banks.

A characteristic feature of the 2006-2011 institutional development of the banking sector was the presence of a sustained trend to change in ownership structure: in the specified period the number of banks with foreign capital has increased from 20 to 22, including from 5 to 7 banks -with foreign capital of more than 50 percent. As a result, the Azerbaijani banking sector formed a competitive environment for banking business.

Foreign banks by opening its offices brought new technologies, new products, new ideas and new professionals needed in the Azerbaijani market.

There was privatized one of the two state banks in Azerbaijan - Capital Bank, the International Bank is the next, as a result of which Azerbaijan's banking market will be fully provided for the free movement of international capital.

The institutional development of the Azerbaijani banking sector was also characterized by optimization of the branch network of banks, closure of unprofitable branches and transition to modern management techniques. So, the number of branches of Azerbaijani banks increased from 420 to 650 units from 2006 to 2011. A structure of banks operating abroad increased from 4 to 8 units.

The banking services in retail and corporate segments of the banking market qualitatively improved, which is reflected in the wider range of banking services, improved quality and introduction of modern strategies on the banking services sales.

The application of information technology in the modern banking system is one of the main elements of the development strategy, determining the quality of bank services, level of management and reliability of the financial institutions.

Thus, a trio of institutional development of the Azerbaijani banking sector defined by the CBA - improving corporate governance, risk management, introduction of information technology in banks, strengthening the banks' role in Azerbaijan's socio-economic development, interplay of these major components, their correspondence with each other will determine the positive development trend and stability of banks.

Kazakhstan's Pavlodar region eyes to annually increase meat production
Kazakhstan's Pavlodar region eyes to annually increase meat production
Prices of Azerbaijani oil drop
Prices of Azerbaijani oil drop
Overall deposits dollarization decreases in Kazakhstan
Overall deposits dollarization decreases in Kazakhstan
Loading Bars
Latest
Kazakhstan's Pavlodar region eyes to annually increase meat production
Baku Higher Oil School, Tallinn University of Technology sign cooperation agreement
Prices of Azerbaijani oil drop
Overall deposits dollarization decreases in Kazakhstan
Record-breaking average cotton yield observed in Azerbaijan
SOCAR says 94% of Azerbaijan’s jet fuel production went to domestic market
UAE - Kazakhstan trade turnover up
Azerbaijani currency rates for Nov. 27
ADB to support road safety project in Azerbaijan
Oil mixed as rally falters over supply concerns, vaccine doubts
SOCAR reveals volume of gas injection into storages
Kazakh oilfield construction company opens tender to buy construction materials
Turkmenistan to conclude additional agreement to increase flow rate of oil wells
FMs of Azerbaijan, Italy discuss latest situation in region
Uzbekistan reveals COVID-19 data for November 27
India ready to cooperate with Turkmenistan in supply of raw materials, finished products
French Senate's demarche laughable, shouldn't be taken seriously - Israeli expert
Greek share in Azerbaijan's total export up over 10M2020
OSCE says it has role to play in post-conflict rehabilitation in Karabakh
Automobile Exhibitors Union of Iran talks imported car pricing
Volume of loans in Azerbaijan grows
Iran's railway network to connect to Turkey through Urmia
Iran's automakers to set prices on domestic products
Share of Italy in total exports of Azerbaijan rises
Imposed restrictions further aggravate economy growth forecast in Georgia - Minister
FAO launches new system of animal identification and registration in Georgia
Britain to curb Google and Facebook with tougher competition rules
Japan's ruling party to propose big spending on green investment: draft
Turkey reports over 29,000 new coronavirus cases
813 more coronavirus cases recorded in Kazakhstan over 24 hours
Kazakhstan increases export to Greece despite COVID-19
World Bank to help Ukraine purchase COVID-19 vaccines
Sweden to reach COVID-19 peak in two weeks: forecast
Imports of fuels and lubricants up to Georgia
Trump says will leave White House if Electoral College votes for Biden
Moscow documents 77 deaths from COVID-19 in past 24 hours
WHO urges African states to strengthen readiness for COVID-19 vaccine
UK records another 17,555 coronavirus cases with 498 cases
China calls for healthy, stable military ties with U.S.
Italy reports 29,003 new coronavirus cases, 822 deaths - health ministry
Russia's Sputnik V developers call on AstraZeneca to try combining vaccines
Paris does not recognize so-called "Nagorno-Karabakh Republic" - Foreign Ministry
Recovery of oil prices has positive impact on Kazakhstan’s external balances - IHS Markit
Group of German medical experts arrives in Kyrgyzstan to fight COVID-19
Georgian NCDC Head urges people over 70 to stay at home except in necessary circumstances
Iran, Russia to cooperate on COVID-19 vaccine development
Bitcoin price down 12.7%
Armenian eco-terror in Karabakh constitute serious threat to peace and security in region - opinion
Hungary, Poland double down to try to eject rule-of-law condition from EU budget
Over 3,500 coronavirus-related deaths recorded in Moscow in October
Belavia resumes regular flights from Baku to Minsk in early December
Iran hopes Kish-Istanbul-Abadan flights to improve its trade
Kazakhstan Railways opens tender to buy welding equipment
Georgia to support businesses amid new coronavirus restrictions
WB extends deadline for implementation of agricultural project in Azerbaijan
Turkey steps up inspections as coronavirus pandemic figures climb
Cavushoglu and Stoltenberg discuss situation in Karabakh
Swedish royals test positive for COVID-19
England reveals new regional COVID tiers in fight against coronavirus
Azerbaijani gymnasts reach finals of 36th European Championship in Ukraine
Georgia continues to support its citizens amid COVID-19 pandemic
News on return of Azerbaijani soldier captured by Armenians false, relative says
Azerbaijan sends note of protest to France
Ample opportunities for investments to be created in Karabakh – minister
Azerbaijani's negotiations with UAE on renewables nearing completion
Kazakhstan, Mongolia eye signing roadmap for trade, economic co-op
Russia bans import of tomatoes from Uzbekistan’s Fergana region
36th COMCEC session opens under chairmanship of Turkish president (PHOTO)
Uzbek Ministry of Finance publishes draft law on increasing taxes on gasoline, diesel
Russian Gazprombank predicts Azerbaijan's economic recovery in 2021
iPhone 12 Pro Max and iPhone 12 Mini now at Azercell Exclusive shops!
Iran becomes self-sufficient in building oil, gas platforms
Cotton growing in Azerbaijan hits record - agriculture ministry
Italian municipalities adopt documents expressing solidarity with Azerbaijani people
Uzbekistan to grow industrial cannabis in Sardoba district
Azerbaijan detects 3,705 new COVID-19 cases, 1,609 recoveries
Turkmen Ministry of Construction opens tender for equestrian sports complex construction
Azerbaijani, Saudi FMs exchange views on current situation in Karabakh
Uzbekistan reveals data on its ICT sphere enterprises and organizations
Azerbaijan to export persimmons to Slovakia and Czech Republic
Level of religious tolerance in Azerbaijan is much higher than in France - ISESCO ex-director
Kazakhstan's exports to Switzerland decrease year-on-year
Azerbaijani medical insurance agency signs contract with tender-winning IT company
Resolution adopted by French Senate must be canceled – Azerbaijani NGO head
Volume of Turkish textile clothing supplies to Kazakh market surges
Latvian AirBaltic cancels Riga-Tbilisi-Riga flights
Reconnaissance work completed within Baiterek space complex creation in Kazakhstan
Thermal power plant modernization, other projects underway in Kazakhstan's Karaganda
Georgia imposes further restrictions to curb spread of coronavirus
Georgian carrier to launch regular cargo flights from China to Europe
Russia's Rostelecom expects to develop transit routes through Turkmenistan
Average monthly salary in Azerbaijan's Nakhchivan rises
Azerbaijani, Afghan FMs discuss latest situation in region
WB, AIIB to fund rural infrastructure development in Uzbekistan
Azerbaijani, Indonesian FMs stress importance of trilateral ceasefire statement
Austria fully supports Uzbekistan obtaining of EU’s GSP beneficiary status
Turkmenistan's Dashoguz region opens tender for installation work
France not part of Karabakh settlement, but part of problem - Turkish defense minister
Japanese companies to provide technical support for terry production in Uzbekistan
Germany's hotspot district to launch COVID-19 mass tests for children
All news