The Central Bank of Azerbaijan (CBA) assessed the impact of changes in the deposit insurance scheme on the banking sector regarding the expiration of the full period of deposit insurance in 2020, the CBA told Trend.
“A number of decisions were made in 2020 to leave the full deposit insurance scheme with the definition of a transition period and to switch to a new model. The new model provides for the introduction of a limit on the amount of compensation, as well as expanding the coverage of insured depositors. As a result of the application of these solutions, 99.9 percent of depositors were fully protected,” the CBA said.
The CBA noted that expanding the coverage of insured depositors is aimed at supporting the policy of developing small businesses and increasing confidence in the banking system, as well as further strengthening the protection of the rights of consumers of financial services.
According to the report of the Deposit Insurance Fund (ADIF), on March 16, 2021, depositors of the previously closed AtaBank, Amrahbank, NBC Bank and AGBank were paid compensation for insured deposits in the amount of over 628 million manat ($369.4 million).
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