Should We Trust Statements by Elman Rustamov?

Closure of Bank Standard re-actualized the issue of confidence in the statements of the head of the Central Bank Elman Rustamov.

Recall that just 4 days before the decision to annul the license of Bank Standard, i.e. September 26, Elman Rustamov told reporters that the Central Bank, the Ministry of Finance and the Financial Markets Supervision House (FMSH) were working together to develop the plan for the bank’s strategic stability.

According to him, the bank has received significant liquidity from the government. He said the bank has already eliminated a critical situation and now the Central Bank together with the Ministry of Finance and FMSH are looking for the optimal plan of the bank’s rehabilitation.

Surprising is how the country’s chief banker could be unaware of the planned decision or could afford a statement with incorrect information.

The expert in the banking sector Akram Hasanov, commenting this for Turan, said that even before the revocation of the license of Bank Standard there was no confidence in the statements of Elman Rustamov.

"The recent events show that the impact to processes is not very strong. Perhaps his position is very weak, and decisions are made by FMSH and the Ministry of Finance,” said Hasanov.

The expert notes that Bank Standard was in a difficult situation at a time when Elman Rustamov led the banking supervision and in this situation he is responsible, as it was at the time when the bank gave unjustified loans.

"The delay of the cancellation of the bank’s license would be beneficial to him, as he could then throw off the responsibility for the situation. Probably by making a statement on 26 September, he wanted to put other structures before the fact," Hasanov said.

Another expert in this field, Natig Jafarli believes Elman Rustamov has a moral responsibility in connection with such incorrect statements.

"About 200 thousand people had deposits in this bank. And the statements of the Central Bank’s head reassured many people. He should apologize to them,” said Jafarli.

The expert noted that such a statement is a blow to the image of the chief banker, as he is not aware of the event, which will take place in just 4 days.

"Statements of such people can have a strong impact on the financial market. It should be noted that his credibility after his statements on the eve of the devaluation, saying that devaluation would not happen, was low. From now on the credibility of his statements will fall even more," Jafarli said.

It should be noted that on September 26 Elman Rustamov made a statement regarding the devaluation, saying that "a sharp devaluation of the manat is not expected." To trust or not to him is already a private matter.  ----- 71B