12:45 - 22.01.2025
January 22, Fineko/abc.az. The Central Bank of Azerbaijan (CBA) spoke about the reasons for the introduction of a countercyclical capital buffer for the country's banks.
ABC.AZ reports that CBA first deputy chairman Aliyar Mammadyarov noted at today's press conference that the main goal is to increase the stability of the banking system to possible shocks and ensure continuity of lending during crisis periods.
According to Mammadyarov, the optimal level of the capital buffer is 0.5%, which corresponds to international practice.
"A countercyclical buffer is applied when the total credit activity in the country exceeds 0.2%. The calculations of the Central Bank show that the introduction of a buffer will reduce the lending potential by 2.5 billion manats. Currently, the loan portfolio of the Azerbaijani banking sector amounts to 18 billion manats," he said.
Earlier, the Board of the Central Bank decided to activate the countercyclical capital buffer at 0.5% of the total capital and capital of the first tier of banks starting from March 1.
17 February 2025
17 February 2025
17 February 2025
17 February 2025
17 February 2025
17 February 2025
17 February 2025
17 February 2025
17 February 2025
17 February 2025
17 February 2025
17 February 2025
17 February 2025
17 February 2025
17 February 2025
17 February 2025
17 February 2025
17 February 2025