Azer Amirov: No need to change interest rates on insured deposits

The Azerbaijani Deposit Insurance Fund currently sees no need to change interest rates on insured deposits.

According to a Report correspondent in Shamakhi, Azer Amirov, Director of the Fund's Legal Department, made the remark at a forum marking National Press Day.

According to him, there are various models for applying interest rate caps on insured deposits worldwide: "In many advanced countries, such caps are not applied at all. However, Azerbaijan's banking system and deposit insurance system are relatively new, so this approach is important from a legal perspective, as citizens know that deposits they place within the established interest rate cap are considered protected and will be compensated if any relevant risks arise."

Amirov noted that the current upper limit of the annual interest rate on insured deposits in national currency is 12%, while in foreign currency it is 2.5%.

"The Fund's Insurance and Risk Management Department regularly analyzes these indicators based on information received from banks and reports on insured deposits. Assessments show that most deposits are within the current interest rate range, so there is no need to change them," he added.