Regulatory Alerts2025-01-14
Regulations on the Ratio, Calculation and Maintenance of Required Reserves
The Central Bank of the Republic of Azerbaijan issues these regulations to standardize how banks and foreign bank branches determine, calculate, and maintain required reserve ratios. The framework mandates monthly calculations based on average daily balances of liabilities in manat, foreign currency, and precious metals, applying differentiated ratios according to deposit types, linked and related party shares, and legal entity size thresholds. Banks must submit compliance reports within five working days, maintain balances in designated correspondent accounts, and face financial sanctions for shortfalls during the maintenance period.
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