Finance

Finance

Assistant to President: Several bankers see their banks as store

11 March 2016 10:26 (UTC +04:00)

“The Financial Market Control Chamber and international financial organizations have their own proposals in this regard. Works are underway for elimination of this problem. One of proposals is increase of interest discount rate. I don’t think the liquidity problem will be solved if the Central Bank increases discount rate to 15%. However it’s not true to take measures for the sake of measure. We can restore manat liquidity by taking reasonable steps. It’s needed to apply to the international practice”, Amirov said.

He was questioned about increase of insured interest rate on manat savings. As a response, Amirov said that this is not a correct step: “You offer to increase the insured interest rate from 12% to 16%. Some offer to increase to 18%. Ok, let’s increase… What will do the banks with its funds attracted in 18%? Do you think that we can develop this sphere by giving loans to entrepreneurs in 30%?”

Amirov also criticized banks’ policy: “The banks are to place the funds, which they attracted, in the real sector. Today, there are problems in repayment of loans. This problem was caused by incorrect policy of the banks. Several bankers see their banks as a store. Those persons give instructions to give loans to concrete persons. There are problems in management of banks. Today, we must protect the banks. Interest rates on credits and deposits must be optimized”.