The American Chamber of Commerce in Azerbaijan (AmCham) recommends the Financial Markets Supervision House (FMSH) consider applying the standards of Basel II.
According to Turan, AmCham stated this in the collection of recommendations to the government of Azerbaijan.
In particular in the block dedicated to the financial sector, AmCham based on Basel II standards, recommends FMSH amend the minimum capital requirements, introduce new minimum standards for processes and risks, and more transparency about the personal risks in publishing reports by banks.
AmCham notes that the banking and financial sector is one of the most developed areas in the economy of Azerbaijan. During the period when the economy is faced with difficulties it is important to continue the state aid. A more stable and predictable banking sector will have a positive impact on the social and economic situation in the country.
AmCham believes that Basel II may help banks to survive during the severe economic crisis, in particular in the development of risk culture among the management staff of banks, and in developing the right tools and the liquidity and capital management.
In addition, AmCham recommends master hedging instruments to offer debtors in foreign currency refinancing in the national currency based on the current exchange rate.
AmCham also recommends that the law "On credit bureaus", which will protect the interests of consumers and will reduce the risks of financial institutions. -----71D
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