The National Bank (NBA Sample Clauses

The National Bank (NBA. The NBA, the central bank was established in 1992, based on a special law. It has at least three different functions: (a) controlling monetary policy, supervising the banking sector, and (c) providing liquidity to the banking sector by giving short term credits to the banks. The interest rate of these loans given by the NBA to banks, at the moment is seen as a guiding figure in the financial market in Azerbaijan, the refinance interest supervision function has promulgated guidelines for prudent banking, in Table 18. The proportion of overdue loan principal has remained at about one-fifth of the total loan assets for the past several years, though it has probably risen somewhat in 1999. Adding overdue interest would bring total arrears to 35% of loan assets. The shares of short-term and long-term loans in total overdue loans track their shares in total loans. The bank listing in an Appendix table shows that only very few banks had any larger deposits. The deposits shown by the three old state own xxxxx, as discussed, are mostly those taken over from their old structure and are not available to fund new loans. Many banks keep their credit portfolios at or below the level of their registered capital. Only a few banks seem to have their loan portfolios and deposits (plus other liabilities) roughly balanced. It is highly recommended that the NBA stick to its plan to continue the process of continuous increases in the minimum capital of existing banks through the end of 2001, so that the planned million will be reached. However, we learned that there are pressures for a moratorium in this plan. In 1998 the NBA as bank supervisor investigated a number of banks. Sixteen were fined and five were closed. key need is for the NBA to enforce greater transparency in the financial relationships between the banks and their main shareholders. It seems likely that that some banks were primarily established to provide credit to a small group of shareholder beneficiaries. The NBA receives support and technical assistance from the International Monetary Fund. Item Guideline I Minimum capital Risk-weighted assets I. 10% I Existing banks: presently S1.75 million; S2.0 million as of 1/1/2000 New banks: million authorized capital I Table 18: NBA PRUDENTIAL GUIDELINES I Maximum risk-weighted loans to related borrower total loan assets 25% of loan assets Maximum deposits capital 200% Maximum risk-weighted loans to shareholders Total loan assets 20% if legal entity 10% if individual ...