Extend the mandate of the deposit insurance fund

The mandate of the Azerbaijan Deposit Insurance Fund (ADIF) is to be expanded, said General Director of the Central Bank of Azerbaijan (CBA) Rashad Orujov, speaking at the VII meeting of the Eurasian Regional Committee (EARC) of the International Association of Deposit Insurers (IADI) in Baku on Wednesday. To do this, he said, need better legal framework.

One important issue is the selection of an optimal method for calculating premiums for deposit insurance, depending on the level of risk in a particular bank, - told reporters on this occasion Executive Director of ADIF Azad Javadov - with last year's Fund explores the question of the application of the insurance premium on the basis of risk in Azerbaijan.

The main purpose of today's meeting EARC IADI is technical assistance to countries in transition to a system of calculating insurance premiums depending on the risk. Identify best practices in the field of banking risk assessment on qualitative and quantitative indicators, the study methodology division of banks into risk groups based on the rating system, methods for determining the strengths and weaknesses of banks in the field of view of the participants.

The event was attended by over 50 representatives of the deposit insurance funds, central banks and international financial institutions between the countries of Asia, Europe and the CIS. ADIF chairs the EARC IADI from July 2012.

ADIFwas created by a presidential decree of 9 February 2007 on the basis of the law "On Insurance of Deposits. Fund are fully covered deposits in the amount of AZN 30,000 at 9% per annum.

The main objective of the fund is to guarantee the return of savings bank depositors in case of bank failure and liquidation of its license to accept deposits.

Members of the deposit insurance fund are 42 banks. - 17D-