BOARD DECISION OF CENTRAL BANK OF THE AZERBAIJAN REPUBLIC

of July 10, 2012 No. 16/1

About approval "Regulations, procedure of payments and storage of required reserves"

The board of the Central bank of the Azerbaijan Republic according to articles 22.0.17 and 32.1 of the Law of the Azerbaijan Republic "About the Central bank of the Azerbaijan Republic" decides:

1. Approve "Regulation, procedure of payments and storages of required reserves" it (is applied);

2. Charge to legal department (R. Melikov) to provide within 3 days submission of this decision to the Ministry of Justice for inclusion in the State register of legal acts of the Azerbaijan Republic;

3. "The regulation, procedure of payments and storages of required reserves" becomes effective since 01.11.2012 and, since the specified date to recognize invalid approved by Board decision of the Central bank of the Azerbaijan Republic of 10.05.2005 (the protocol No. 11) (the certificate No. 3154 of 30.05.2005) "Regulation, procedure of payments and storages of required reserves" and the changes made to these Rules by decisions of 27.05.2008 (the certificate No. 3401 of 15.06.2008) and of 14.10.2008 (the certificate No. 3412 of 23.10.2008);

4. Charge to department of monetary management (H. Abdullaev, A. Aleskerov) to provide after entering of these rules into the State register of legal acts of the Azerbaijan Republic their mailing in commercial banks and carrying out with respect thereto to the special presentation for banks.

Approved by the Decision of the Central bank of the Azerbaijan Republic of July 10, 2012 No. 16/1

Regulation, procedure of payments and storages of required reserves

1. General provisions

1.1. These rules are prepared according to articles 29 and 32 of the Law of the Azerbaijan Republic "About the Central bank of the Azerbaijan Republic" and determine regulation, procedure of payments and storages of required reserves for the banks performing activities in the Azerbaijan Republic and local branches of foreign banks (further - banks).

1.2. The determinations used in these rules have the following values:

1.2.1. obligatory reserves tools of monetary management which is used by the Central bank of the Azerbaijan Republic (further - the Central bank) in regulation of money supply and liquidity of bank system in the country;

1.2.2. regulation of required reserves - the percentage indicator used when calculating required reserves of bank and expressing certain part of calculation base;

1.2.3. calculation base - the obligations of bank in national and foreign currency, precious metals considered when calculating required reserves;

1.2.4. the calculation period - period of time in days during which required reserves are calculated and to which the calculation base belongs;

1.2.5. storage period of reserves - period of time in days throughout which the required reserves calculated based on calculation base of the last period of calculation are stored.

1.3. The regulation of required reserves is established differentially at one level on all deposits or depending on type, term, currency or the size of calculation base of deposits.

2. Regulation and calculation of required reserves

2.1. The regulation of required reserves is established in percentage terms obligations.

2.2. The regulation of required reserves is differentiated by Board of the Central bank depending on whether the total amount of deposits of legal entities in national currency exceeds one billion manats, and the total amount of deposits of legal entities in foreign currency exceeds equivalent in the amount of seven hundred fifty million manats, and is determined as follows:

2.2.1. on deposits of the physical persons and physical persons who are engaged in business activity without formation of legal entity (further - individual entrepreneurs), attracted in national currency;

2.2.2. on deposits of the physical persons and individual entrepreneurs attracted in foreign currency;

2.2.3. on deposits of legal entities in national currency;

2.2.4. on deposits of legal entities in foreign currency:

2.2.5. on the deposits attracted in precious metals;

2.2.6. according to obligations to the financial nonresident sector in manats and to payments in manats with the international financial institutions;

2.2.7. according to obligations to the financial nonresident sector in foreign currency and to payments in foreign currency with international financial institutions;

2.2.8. according to obligations to the financial nonresident sector and the international financial institutions in precious metals.

2.3. The decision on regulation of required reserve and cancellation of regulation of required reserve becomes effective in the day determined by Board of the Central bank what banks are notified officially on.

2.4. Ceased to be valid according to the Resolution of Board of the Central bank of the Azerbaijan Republic of 19.12.2022 No. 57/1

2.5. Required reserves are calculated based on average day balance for the period of calculation of calculation base of bank (Appendix 1).

2.6. Required reserves on foreign currency and securities are calculated on the basis of the official rate established by the Central bank the last working day of the period of calculation of the Central bank.

2.7. The period of calculation begins in the first and comes to the end in the last calendar day of every month.

2.8. By reorganization of bank according to reorganization form required reserves for the reorganized bank (banks) are recalculated based on calculation base of this bank (banks).

2.9. The bank shall submit the report on required reserves in the Central bank (Appendix 2) within 5 (five) working days following the calculation period.

2.10. Required reserves of the next storage period are determined by the report.

2.11. The deposits which are on balance of the bank branches located outside the Azerbaijan Republic do not join in calculation base.

3. Storage of required reserves

3.1. Required reserves are stored on correspondent account of bank in the Central bank.

3.2. The storage period begins for the 15th calendar day of the month following after completion of settlement period and proceeds till 14th calendar day of the next month.

3.3. The amount of average day balance of correspondent account on storage period shall not be less required reserves calculated on the basis of the calculation base covering the calculation period.

3.4. The remaining balance of correspondent accounts in non-working days during the storage period is accepted in the amount of remaining balance the previous working day.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info