CIS finance and banking: How to achieve sustainability
Bankers, businessmen and government officials of the
former Soviet republics have convened in Baku for a conference
exploring avenues for boosting sustainability of financial
systems.
The 2nd Baku International Banking Conference of CIS member states, ``Increasing sustainability of the Commonwealth states` financial and banking systems``, was attended by 210 people from 11 countries. Participants included executive officials, representatives of associations, local businesses, state and commercial banks, investment companies, etc. The event was organized by the CIS Finance and Banking Council (FBC), with the support of the CIS Executive Committee, the Azerbaijan Presidential Administration and the International Bank of Azerbaijan (IBA), the country`s leading bank. The conference was covered by 55 reporters from newspapers, magazines and other media based in CIS and beyond.
The conference focused on three topics: sustainability of the CIS states` national banking systems amid volatility in world financial markets; the development of CIS financial infrastructure as a basis for shaping an integrated regional banking market; and the formation of a common area in CIS for payments.
Khagani Abdullayev, General Director of Azerbaijan`s Central Bank, briefly outlined key trends of global economic development in the backdrop of the dire financial crisis and provided an overview of the macroeconomic situation in Azerbaijan.
Attendees took particular interest in a speech delivered by Jahangir Hajiyev, Chairman of the IBA Board and FBC Vice-President. He emphasized that Azerbaijan is currently a self-sufficient country providing itself with financial, energy and labor resources, and food.
``All this has laid a steady foundation for increased competitiveness, reliability and efficiency of Azerbaijan`s banking system, which has been surpassing overall economic growth in recent years,`` Hajiyev said.
The board chairman focused in his address on the operation of the IBA, which has played a great role in all achievements made by the national banking sector.
``The IBA is actively involved in the integration processes, one of whose directions has been expanding the scope of its transactions in international monetary markets and capital markets. Since the beginning of 2009 alone, agreements on syndicated loans totaling over $200 million have been concluded with the world`s biggest banks. In the conditions of the ongoing global financial crisis and a shortage of spare funds in world financial markets, this is proof of confidence and great interest in the IBA on foreign investors` part. At the same time, repayment of borrowed external loans is being timely carried out; the total amount of cleared arrears constituted $800 million in 2008 and $35 million since the beginning of this year.``
The IBA is placing a particular emphasis on the Persian Gulf states, and a representation in Dubai is already in operation. Further, a subsidiary is expected to open in Qatar in 2010.
Hajiyev said in conclusion that, in view of drastic transformations expected in the post-crisis financial services market, the key issue for each national banking system is swiftly capitalizing on the acquired experience and the potential for its sustainable development. In this context, Hajiyev focused on key problems whose solution will promote his bank`s sustainable growth. The objectives include deepening integration, in particular, within CIS; introducing Islamic banking elements; minimizing credit risks; drawing syndicated loans; increasing capitalization; and applying innovations.
The 2nd Baku International Banking Conference of CIS member states, ``Increasing sustainability of the Commonwealth states` financial and banking systems``, was attended by 210 people from 11 countries. Participants included executive officials, representatives of associations, local businesses, state and commercial banks, investment companies, etc. The event was organized by the CIS Finance and Banking Council (FBC), with the support of the CIS Executive Committee, the Azerbaijan Presidential Administration and the International Bank of Azerbaijan (IBA), the country`s leading bank. The conference was covered by 55 reporters from newspapers, magazines and other media based in CIS and beyond.
The conference focused on three topics: sustainability of the CIS states` national banking systems amid volatility in world financial markets; the development of CIS financial infrastructure as a basis for shaping an integrated regional banking market; and the formation of a common area in CIS for payments.
Khagani Abdullayev, General Director of Azerbaijan`s Central Bank, briefly outlined key trends of global economic development in the backdrop of the dire financial crisis and provided an overview of the macroeconomic situation in Azerbaijan.
Attendees took particular interest in a speech delivered by Jahangir Hajiyev, Chairman of the IBA Board and FBC Vice-President. He emphasized that Azerbaijan is currently a self-sufficient country providing itself with financial, energy and labor resources, and food.
``All this has laid a steady foundation for increased competitiveness, reliability and efficiency of Azerbaijan`s banking system, which has been surpassing overall economic growth in recent years,`` Hajiyev said.
The board chairman focused in his address on the operation of the IBA, which has played a great role in all achievements made by the national banking sector.
``The IBA is actively involved in the integration processes, one of whose directions has been expanding the scope of its transactions in international monetary markets and capital markets. Since the beginning of 2009 alone, agreements on syndicated loans totaling over $200 million have been concluded with the world`s biggest banks. In the conditions of the ongoing global financial crisis and a shortage of spare funds in world financial markets, this is proof of confidence and great interest in the IBA on foreign investors` part. At the same time, repayment of borrowed external loans is being timely carried out; the total amount of cleared arrears constituted $800 million in 2008 and $35 million since the beginning of this year.``
The IBA is placing a particular emphasis on the Persian Gulf states, and a representation in Dubai is already in operation. Further, a subsidiary is expected to open in Qatar in 2010.
Hajiyev said in conclusion that, in view of drastic transformations expected in the post-crisis financial services market, the key issue for each national banking system is swiftly capitalizing on the acquired experience and the potential for its sustainable development. In this context, Hajiyev focused on key problems whose solution will promote his bank`s sustainable growth. The objectives include deepening integration, in particular, within CIS; introducing Islamic banking elements; minimizing credit risks; drawing syndicated loans; increasing capitalization; and applying innovations.
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