Business consultancy project

Basedon 28.02.2019Data

Number of banks	30
State banks	2
Private banks	28
Banks with foreign capital	15
banks with 50%-100% foreign capital, of which	8
local branches of foreign banks	2
banks with less than 50% foreign capital	7
The number of banks licensed since the beginning of the year	0
The number of banks whose licenses have been revoked since the beginning of the year	0
Number of banks branches	508
Number of banks' divisions	130
Number of ATMs	2,510
Number of employees	17,588

3. 
   Financial local authorities.
   

Azerbaijan Banking system is regulated by the several Laws, such as the Law "On Banks", "On the Central Bank of the Republic of Azerbaijan", the Charter of Financial Markets Supervisory Authority (FIMSA) and normative acts of the Central Bank of Azerbaijan (CBA) and FIMSA. (Azerbaijan and World Trade Organization, n.d.)
According to the Article 2.1 of the Law of the Republic of Azerbaijan “On Banks”, the banking system of Azerbaijan consists of the local regulator established in 2016 – FIMSA; CBA and credit institutions. (FIMSA, 2017)

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  CBA
  

A National Bank of Azerbaijan was founded by decree of the president in 1992. According to the legislation main functions of the Bank are: determining and implementing the monetary and exchange rate policy, organizing the circulation of funds, regulating and controlling payment systems, maintaining and controlling gold and foreign exchange reserves. In 2009 the Bank was renamed as the Central Bank of Azerbaijan (CBA) and licensing, regulation and supervision authorities of the Bank were reassigned to the new entity according to economic reforms fulfilled in 2016. Moreover, after the changes, the Central Bank concentrated on the maintaining macroeconomic and financial stability, coordination of interbank and licensed payment systems and regulation of cash flow. (Central Bank of the Republic of Azerbaijan. History, 2019)
Azerbaijan state monetary and currency policy is developed and implemented by the CBA. (Azerbaijan and World Trade Organization. Services., n.d.)

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  FIMSA
  

FIMSA was formed in 2016 based on the Decree adopted by the President. FIMSA is the first state legal body ensuring the effective functioning of the financial market, aimed at the enhancing processes such as regulation, licensing and supervision of Financial Market of Azerbaijan to make financial market sustainable and developed. The functionality of the body involves control and maintenance in:

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  Insurance field
  

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  In respect of credit institutions: Banks, non-banking organizations and national postal operator
  

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  Securities market
  

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  Payment systems
  

Moreover, FIMSA is responsible for control and prevention of financing of terrorism and legalization of criminal funds and maintains the transparency in financial field. Furthermore, a new regulatory body is obliged to protect the interests of insurance companies, investors and other stakeholders based on the existing legislation (FIMSA. History., 2017). Furthermore, legal acts regulating the financial market,

including the conduct of inspection and licensing matters (issue and revoke processes) of market players are fulfilled by FIMSA (Azerbaijan and World Trade Organization. Services., n.d.)
- Azerbaijan Banks Association
“Azerbaijan Commercial and Cooperative Banks Association” (ABA) was established in Azerbaijan in 1990 as a result of the collective decision of 10 private banks. Nowadays, members of the ABA are presented by 31 banks and 2 non-banking organizations and Azericard payment system. The major aim of the activity of the organization is the support and protection of corporate interests of the banks and organizations forming this governmental body in terms of legal, social and business services as well as regulation of their performance. Moreover, creating collaborative relationships with international banks and related infrastructure, improving legal aspects of the banking sphere including initialization of reforms in banking field of the economy with the assistance of the Central Bank’s and Government’s support are also integral parts of the ABA’s activity. The ABA initiated the establishment of Azerbaijan Training Center, Court of Arbitration, Bank Information Technologies Center, “Banks and Business” newspaper, signed Cooperation Agreements with 13 Bank Associations around the globe in 2000-2010 period. Moreover, ABA became a member of the International Coordination Council (CIS), European Banking Federation in that period (AZERBAIJAN BANKS ASSOCIATION. History of ABA, 2019)

2.