“Using a proactive approach to banking supervision and prudential regulation, not having allowed accumulation of additional risks in the sector, regulatory frameworks have been adapted to the new situation and countercyclical mode has been applied regarding the requirements to banks,” said Rustamov.
He said that the countercyclical approach used by the Central Bank of Azerbaijan and supporting measures made it possible to manage risks at an adequate level, and banks have shown resilience to shocks thanks to the formed capital and institutional buffer.
The assets of banks at the end of 2015 amounted to 35 billion manats, credit investments in the economy of the country - 21 billion manats, 75 percent of which fall to the share of business loans.
At the meeting it was noted that in 2015, Azerbaijan`s foreign trade position was formed under the influence of the situation on the global consumer markets and trading partners.
“The decline of the current account surplus to $241 million in January-September 2015 compared to the same period of 2014 is mainly due to a decrease in oil prices,” said the message. “The consumer balance and balance of services in non-oil sector were influenced by the economic processes occurring in partner countries.”
The Central Bank of Azerbaijan, using the stabilizing possibilities of monetary policy adequately to the economic cycle, has directed its policy to ensure macroeconomic and financial stability.
“In order to create conditions for increasing investment activity of non-oil sector, lower interest rates on loans, the Central Bank of Azerbaijan has lowered the mandatory reservation requirements and parameters of the percentage corridor,” the message said.
In 2015, some 43 banks carried out activities in Azerbaijan, and their number fell to 37 in January 2016.
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