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ADIFâ€™s authority may be extended

29 November 2010 15:09 (UTC +04:00)

According to him, the fund operated simply when it was established and this experience is applied in othere countries: â€œThe funds get â€œMedium Extendedâ€ authority and after it they get â€œFull Mandateâ€ authorityâ€.

He also noted that offers will be made on amendments to the law on Deposit Insurance by the fund: â€œCurrently, Azerbaijan learns the experiences of Russia, Kazakhstan and Ukraine on given authorities to the funds.â€

Note that, there are 3 fund types on deposit insurance: Simple established funds â€“ only operates on payments (Paybox). For ex: ADIF

The second type includes Medium Extended mandates. Herein, funds enter the banks management when their situations become worse or exposes to more risks. After entering, they implement restructuration and normalizing programs. After these programs, fund can sell the bank or abolish the licence.

Ful mandate funds have authorities on holding controls in banks. At the same time, those funds protect the deposits of individuals and legal entities.

ADIF has been in operation since 2007.