The first international banking conference "Bank System Development in Azerbaijan" opened in Gulistan Palace, Baku yesterday

The conference is organized by Azerbaijan National Bank and Azerbaijani Atabank joint stock commercial bank. Elman Rustamov, head of Central Bank, Vahid Ahundov, State Advisor for Economic Policy, Farhad Aliyev, Minister of Economic Development, Fazil Mamedov, Minister of Taxes, Heydar Babayev, head of State Committee for Securities, parliament Deputies, representatives of Azeri business and bank circles take part at the conference. Donna Doulset-Koirolo, World Bank Director for South Caucasus, and John Wakeman-Linn, Deputy Director of IMF Second European Department, are also among the participants. At first Ilham Aliyev's speech of welcome to participants has been read out and then Elman Rustamov has made a report of development of banking system in Azerbaijan. He said that number of banks has significantly decreased in Azerbaijan in the past years as a result of reforms and their capitalization has increased. Number of banks dropped from 250 to 46 during the past five years. During this period capitalization increased sevenfold and at present reached $130 million, 2% of GDP. IMF representative Wakeman-Linn spoke about Azerbaijan's achievements in the bank reforms field and presented some recommendations. He stressed the necessity of completion of state banks privatization, creation of a competitive environment, reforms in the judicial system and transparency of National and commercial banks. WB Director for the South Caucasus emphasized need for further development of banking infrastructure and transition to fast electronic settlements. She said that bank services could be provided by postal offices in distant regions of the republic.