The Central Bank of Azerbaijan (CBA) imposed a fine of 272,344 manats on OJSC “International Bank of Azerbaijan” (IBA).
Oku.Az reports that it was informed by CBA.
It was reported that to effectively manage excess liquidity in the banking sector and reduce liquidity concentration, the instrument of mandatory reserve standards is used. Mandatory reserves applied to banks are regulated by the Law “On the Central Bank” and the rule “Random, calculation and maintenance of mandatory reserves” of the institution. Therefore, banks must ensure that the required mandatory reserves are held in correspondent accounts at the CBA in accordance with the Regulation.
During the storage period from October 15 to November 14, IBA did not comply with the requirements of the Regulation by maintaining mandatory manat reserves below the required rate. Based on this, according to article 32 of the Law, a financial sanction was applied against the state bank.
