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Banking Forum Starts in Baku
The Banking Forum organized by the Association of Banks of Azerbaijan (ABA) started in Baku.
Speaking at the opening of the forum, the President of ABA, Zakir Nuriyev noted that the depreciation of the manat has increased the risk of foreign currency loans, which led to losses in the banking sector.
According to him, on the other hand the reduction of the money supply has created liquidity problems for the manat and we have seen a significant reduction in lending to the real sector.
Nuriyev said that now a new stage began in the financial sector.
“But that does not mean that we should put the responsibility on the shoulders of others, or violate the principles of the free market. Currently, there is a process of adaptation to the new situation. A common rule is that every crisis creates new opportunities for development,” he said.
Addressing the forum, the head of the Board of Directors of the Financial Markets Supervision House Rufat Aslanli, in turn, reported on the development of the legal platform for the main shareholders, commercial banks and bank management. According to him, the aim of this platform is the ability to attract executives of banks, whose actions cause the costs of the public and taxpayers, to financial, administrative and, if necessary, to judicial liability.
“To this end, a relevant bill is developed and discussed,” Aslanli said.
He noted that the Central Bank's decision to increase the minimum capital requirement has kept this sector from more problems, when CBA was the regulator.
Aslanli said that in order to achieve the stability of the banking sector restructuring and capitalization of the sector should be completed as soon as possible.
“We plan to complete this process by the end of the year or the first three months of next year,” he said.
The head of Azerbaijan's State Oil Fund Shahmar Movsumov, in turn, noted that the transition to the post-oil era does not mean the end of the oil extraction itself.
“This time is to be taken not as a crisis, but as post-oil time and the time of new opportunities,” he said. Movsumov said that in the coming 15-20 years, depending on oil prices, Azerbaijan will receive 100 billion dollars in revenue from oil.
At present Azerbaijan moves to a new economic model and the reduction of transfers from SOFAZ to the state budget is indicative of this policy, he said.
“In fact, the development due to government spending limited the development of the private sector. Speaking about the new post-oil era means the private sector comes to the role,” he said.
The Chairman of the Parliamentary Committee on Economic Policy, Enterprise and Industry Ziyad Samedzadeh said that without the support of the real sector by commercial banks no economic development is possible. In addition, referring to tensions between banks and their customers after two devaluations, he noted that it is necessary to find a compromise on this issue. ----71B
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