What benefits can Azerbaijan derive from securities market development?

Baku, Azerbaijan, Oct. 17

By Azad Hasanli – Trend:

Azerbaijan has a great potential to develop securities market, Jalal Gasimov, first deputy chairman of board at PASHA Holding, said.

Gasimov made the remarks addressing the conference titled “Capital Markets of Azerbaijan: Opportunities and Prospects” in Baku Oct. 17.

He stressed that banks, population and corporate clients can benefit from the development of the securities market.

“Today banks draw funds mainly through deposits,” he said. “But debt securities are more long-term and cheaper resources, and banks could draw cheaper funds via their placement.”

As for corporate clients, Gasimov added that investments in securities can help them reduce their dependence on banks.

“Investments in securities can also help companies place their short-term liquidity,” he said. “For individuals, investing in securities is an opportunity to get a higher return.”

Gasimov said that preservation of macroeconomic stability, diversification of the real economy, institutional strengthening of investors, and weakening of requirements to companies in terms of their capitalization must be the main conditions for development of the securities market.