Law Changes To Allow Azerbaijan's Central Bank To Impose Sanctions On Credit Institutions

2023-07-31 09:13:13

(MENAFN- Trend News Agency) BAKU, Azerbaijan, July 31. The Central Bank of Azerbaijan (CBA) will be able to impose financial sanctions on credit institutions that violate the rules for calculating and maintaining mandatory reserves, trend reports.

This is reflected in the changes to the law "On the Central Bank of the Republic of Azerbaijan" signed by President of the Republic of Azerbaijan Ilham Aliyev.

According to the amendments, the CBA will be able to impose a financial sanction in the amount of 2 times of the average daily discount rate of the currency to be retained on the unsecured amount of mandatory reserves during the reporting period and 3 times of the average daily discount rate if the violation is committed three or more times during the year.

In accordance with the current law in force, the CBA could apply administrative sanctions provided for by the Code of Administrative Offenses of the Republic of Azerbaijan.

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