BAKU, Azerbaijan, October 29. Central Bank is not only responsible for overseeing the banking sector but is also interested in developing other areas of the financial sector, the governor of the Central Bank of Azerbaijan (CBA) Taleh Kazimov said, Trend's correspondent reports from the event.
He made the remarks at a press conference on Thursday following a meeting on the parameters of the interest rate corridor.
According to him, the banking sector accounts for 94–95% of Azerbaijan’s financial sector.
“The Central Bank is responsible not only for the banking sector but is also interested in developing other underdeveloped areas of the financial sector. There is considerable potential in areas such as insurance, capital markets and fintech,” Kazimov said.
He noted that the dominant position of banks in Azerbaijan’s financial sector is largely due to historical factors.
“Historically, the banking sector has been the leading segment of the financial sector. As we have noted, banks account for 94–95% of the financial sector today,” he said.
Kazimov added that the development of a bank-based financial sector in Azerbaijan differs from the situation in some other countries.
“Many countries have bank-based financial sectors. For example, the United States has a capital market-based financial system, where capital markets account for a larger share than the banking sector. In our case, the opposite is true. The situation is similar in other neighboring countries,” the CBA governor said.
He noted that there is considerable potential for developing individual segments of Azerbaijan’s financial sector, and that the key priority is to create the right conditions to realize it.
“We see potential in every segment, and that potential is substantial. As the regulator, we believe we need to create the conditions for it to be realized. Our strategy should focus on creating these conditions, while market participants should use them to develop their respective sectors,” Kazimov added.
