Akram Hasanov: "Closing Bank Standard, State Saves Money Rather than Confidence in Banking System
Closure of Bank Standard will negatively affect the credibility of the bank system of Azerbaijan, the expert Akram Hasanov said.
In an interview with Turan the banking expert said the Financial Markets Supervision House (FMSH) recognizes this bank is systemically important in the banking sector.
"I believe that by taking the decision to close the bank they chose to preserve the state money rather than confidence in the banking system," Hasanov said.
The expert believes the closure of Bank Standard will also have a negative impact on the devaluation processes.
"The improvement of the bank requires 18 months and the compensation needs 6 months. Now, the investors must be returned AZN 460 million and most of these deposits are in dollars. And those who will be returned the money in manats will naturally buy dollars. All this will have an impact on the growth of demand for foreign currency," he said.
On September 30 FMSH decided to annul Bank Standard.
The volume of bank deposits is 520 million AZN, of which 460 million AZN is insured. From this 460 million AZN, 260 million is deposits in dollars and 38 million AZN is in manats.
The President of the FMSH Board of Directors Rufat Aslanli told reporters that in order to ensure the financial stability a decision was taken on the sale of foreign currency by the Central Bank directly to the Deposit Insurance Fund. --71B
Economics
-
Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
-
Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
-
Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
-
In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
Leave a review