Khagani Abdullayev: Azerbaijani banks can even cope with all deposit withdrawals

Khagani Abdullayev: Azerbaijani banks can even cope with all deposit withdrawals
# 05 December 2008 10:13 (UTC +04:00)
He added that the total amount of deposits held in banks is AZN 1.8 billion.
He argued that the banks can even cope with a bank run when all customers withdraw their deposits.
He cited figures, saying concerns of depositors have no ground.
He attributed a 5% decline in bank deposits during October to the fact that people decided to use their deposited money to finance their businesses after banks limited loan lending in the country.
As a proof, he pointed to the fact that the decline mostly happened to large demand deposits.
Khagani Abdullayev also added that the issue of increasing the insured part of deposits is on the agenda.
The deposit insurance ceiling is AZN 6 000 at present.
Under the Deposit Insurance Law, deposits received by a bank at an annual yield of 1.8 times the discount rate set by the central bank are not eligible for insurance.
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