Azerbaijan, Baku, Jan. 12/ Trend I. Khalilova/ It is necessary to increase maximal amount of insurance compensation via Azerbaijan Deposits Insurance Fund (ADIF) at least by 3-4 times to up trust on commercial banks, Akif Musayev, doctor of economy, professor, member-correspondent of Azerbaijani Academy of Sciences, said.
Since early 2008 compensation in the amount of 100% is paid if the amount of deposit doesn't exceed 6,000 manat but since Jan. 1, 2010 this sum is expected to be increased to 8,000 manat. Upon the Law on Deposit Insurance, deposits in the amount of 4,000 manat were fully paid off from the Fund by Jan. 1, 2008.
Currently, the National Bank of Azerbaijan holds consultations with banks to increase this sum in order to strengthen trust on banking system of the country which is necessary in the terms of world financial crisis. In its turn, ADIF intends to conduct monitoring to reveal necessity to change the amount of insurance compensation.
Currently, with the support of Global Banking Development Solution, ADIF devises procedure regulations on payment of compensations and regulations for selecting agent bank.
"Attraction of the agent bank is envisaged to pay compensation on deposits of bankrupted bank, i.e. it will play a role of "cash desk"," Azad Javadov, acting director of the Fund, said.
After getting the information on bankruptcy of a bank - member of the Fund, this data will be delivered to the agent bank. It will also get finance to pay off debts of the bank to the depositors, he said.
Given extraordinary member fees granted by the banks while their including in the Fund register, total sum of payments in the Fund made up 9.421mln manat on Oct.1.
The aggregate amount of deposits of physical entities in ADIF member banks totaled 1.731bln manat, including uninsured deposits in amount of 268mln manats. The number of insured depositors made up 1,275,540 people.
The Fund has been operating since Aug. 13, 2007. ADIF includes 38 banks operating in the country.
Exchange rate on Jan. 12 is 0.8026 AZN/USD.
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