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National Bank of Azerbaijan: Global financial crisis poses no threat to countryâ€™s banking system

20 October 2008 09:02 (UTC +04:00)

â€œThese media rumors are nothing but groundless and absurd, and aimed to damage the positive image of Azerbaijanâ€™s banking system,â€ said the central bank in statement.
The central bank assured the public that the global economic crisis doesnâ€™t pose a threat to the countryâ€™s emerging banking system since preventive and precautionary measures and flexible financial instruments are resorted to.
â€œNone of banks in Azerbaijan are faced with financial tension and all banks are functioning on regular operation modeâ€, said the statement.
Earlier, the central bank passed a decision to cut the key rates to 12% from 15%, reducing the interest rate ceiling to 17% from 20% and leaving the interest rate floor unchanged to narrow the corridor.
Besides, under the decision, compulsory reserve requirements on banksâ€™ liabilities in national and foreign currencies dropped to 9% from 12% and compulsory reserve requirements on banksâ€™ external liabilities fell to 0% from 5% effective November 3.