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Azerbaijani Central Bank simplifies reserves creation norms for banks

Azerbaijani Central Bank simplifies reserves creation norms for banks

Tarix: 7 Yanvar 2016 10:52

Baku, Azerbaijan, Jan. 7

Trend:

The Central Bank of Azerbaijan has changed the reservation rates for poor and risky assets of banks.

In order to neutralize the impact of macroeconomic risks on the banking sector within the framework of countercyclical prudential regulation of the sector and support for financial stability, the central bank has lowered the reservation rate for poor assets to 25 percent, and the reservation rate for risky assets - up to 50 percent.

Previously, the reservation rate for poor and risky assets was 30 percent and 60 percent, respectively.

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