IMF sees no systemic risk to banking sector of Azerbaijan
Baku, Fineko/abc.az. Today the IMF staff mission has completed its Baku visit started on 24 May within which it conducted consultations with the Azerbaijani government on economic policy issues, prospects of development and future debate on Article IV of the IMF Establishment Agreement.
Mission chief Nadeem Ilahi has claimed that the mission discussed issues of the state of the banking sector with the Central Bank of Azerbaijan.
"Despite the difficulties of a number of banks, the issue of creation of a separate organization on management with bad bank assets in Azerbaijan does not stand. We do not see problems at big banks, but small banks have them. In this regard, we discussed with the CBA the matter of strengthening the banking sector regulation and monitoring of credit institutions," Mr. Ilahi said.
In the first quarter, a range of banks announced a grave loss of assets and attracted external management to improve the situation.
"We see no serious systemic problems in the banking sector of Azerbaijan. A more detailed analysis will be made in late 2012 or early 2013 within the Financial Sector Assessment Program (FSAP), to be carried out jointly by the IMF and the World Bank. The FSAP conclusions will be the basis for the preparation and implementation of a new program of reform of the banking system of Azerbaijan,” Mr. Ilahi said.
The current FASP will be the second estimate of the country’s financial sector by the WB and the IMF. The first assessment was conducted before the global 2008/9 crisis.
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