From American Banker (subscription required) By VICTORIA FINKLE July 3, 2014 Last year's push by some...
Law of the Azerbaijan Republic on Banks
(amended through 2008)
Law of the Azerbaijan Republic on Banks defines the principles, rules and standards for organization, internal management, regulation of activities and liquidation of banks in Azerbaijan. It lays down the legal basis of the bank system, principles of banking activity and the procedure of organization of banks in the Azerbaijan Republic.
The chapters in this law cover the following aspects:
- Definition of a bank, its responsibilities, statutes, scope of operations;
- Commencement and termination of banking activity;
- Relations between banks, servicing of customers, protection of rights and interests of customers;
- Collection of savings deposits by the banks, safety of the deposits and rights of the depositors; and
- Accounting and reports in banks, control over their activity by the Central Bank.
Further, the law presents a decree that adds the following clauses:
- Permitting the involvement of banks in material production as prescribed by the law; and
- Prohibiting the accomplishment of any operation except insurance of hard currency and credit risks.
Finally, it also presents a decree with regard to the foreign investments and the conditions related to it.