THE MEETING OF MARKET-MAKERS OF MONEY MARKET HAS TAKEN PLACE AT BAKU INTERBANK CURRENCY EXCHANGE Tuesday, 21 September 2010
Today at the meeting of banks representatives – markets-makers of the money market took place at Baku Interbank Currency Exchange (BBVB): OJSC “Damirbank”, OJSC “AGBank”, ICB “Nikoil”, CJSC “Standard bank”, OJSC “Pashabank”, OJSC “Unibank”, OJSC “Atabank”, OJSC “Bank Respublika”, OJSC “Bank of Baku”, OJSC “Turan bank” and OJSC “AFB Bank”. The Central bank of Azerbaijan (CBA) also participated at the meeting. Discussion of questions of the further development of the interbank credit market as a whole and a new segment – the Guaranteed Money Market (GMM) of OICM* was the purpose of the meeting.
Participants of the meeting — commercial banks deemed necessity to increase term and the sums of the interbank credits turned to GMM OICM.
The decision to carry out corresponding consultations with markets-makers of OICM and the Central Bank was accepted for development of corresponding recommendations.
We will remind that on October 21, 2009 the collective agreement that is a legal basis for a new segment of the money market was signed between CBA, BBVB and a number of banks- markets-makers of the money market (OJSC “Damirbank”, OJSC “AGBank”, ICB “Nikoil”, CJSC “Standard bank”, OJSC “Pashabank”, OJSC “Unibank” and OJSC “Bank of Baku”). Then OJSC “Turan Bank” and OJSC “AFB Bank” joined to the project.
For today the number of participants of the Guaranteed Money Market makes 9 banks.
The guaranteed money market (GMM) – is a segment of the interbank credit market where discharging of obligations on credit operations is guaranteed by the Central bank. Trading limits to banks are established by the Central Bank and co-ordinated between all participants. Decisions on changes of trading limits also are considered and accepted by the Central Bank. Each of banks-participants of the agreement can involve credit resources no more than one million manats a month. The maximum term of credit granting is no more than 30 days. The volume of percentage rates is defined by banks independently.
*OICM – the Organized Interbank Credit Market