At this stage, no significant changes are expected in the deposit insurance system in Azerbaijan.
According to a Report correspondent in Shamakhi, Azer Amirov, Director of the Legal Department of the Azerbaijani Deposit Insurance Fund, made the remark at a forum on the occasion of National Press Day.
According to him, the deposit insurance system has already been established and is currently functioning as a fully-fledged mechanism: "A robust and fairly sophisticated legislative framework has been established in this area. The Deposit Insurance Fund is the key institution ensuring the functioning of the system. In fulfilling its functions, it interacts with a number of government agencies. At the same time, the deposit insurance system operates on the basis of a collective insurance model, in which commercial banks operating in Azerbaijan participate."
He noted that commercial banks register as members of the Deposit Insurance Fund, receive the relevant certificates, and fulfill their commitments to insure the deposits they accept: "The deposit insurance system is an integral part of the financial stability system. The financial stability system, in turn, is an integral part of the financial and banking sector. The Central Bank of Azerbaijan oversees the banking system. The Deposit Insurance Fund, acting as an insurer, is a key element of the financial stability system and the deposit insurance mechanism."
Amirov believes that the deposit insurance system as a whole is fully formed: "Nevertheless, as in any sector, systemic reforms and updates are inevitable here in accordance with the demands of the times. At the current stage, no drastic changes are expected in the established system."