Legal platform for banking management being developed

Baku. 24 November. REPORT.AZ/ Legal platform is being developed for stakeholders and management of banks in Azerbaijan. 

Report informs, Chairman of Board of Directors of Financial Markets Supervision Chamber (FMSC) Rufat Aslanli said at the forum "Banking prospects in the post-oil period” held by Azerbaijan Banks Association (ABA).

According to him, they aim to introduce legal measures for careless bank managers: “Appropriate legal draft has been developed”.

R. Aslanli noted that Azerbaijan Deposit Insurance Fund successfully manages payment of compensations to clients of bankrupted banks, and they currently conduct works towards high level capitalization, financial durability of the institution and gradual withdrawal of government from the compensation process: “When the Fund was created in 2005, it was envisaged to gradually transfer to risk-based collection model”.

Head of the Chamber added that, at present, they are developing personal responsibility maps for banks: “Administrators responsible for various fields, risks, decisions will be appointed, and they will be introduced to institution for financial supervision”.