National Bank of the Republic of Azerbaijan (NBA)

October 18, 1991, state independence of Azerbaijan was regained. It is interesting that legal basis for establishment of banking system of independent Azerbaijan Republic, including National Bank were formed a short while before. Thus Article 14 of the Constitution Act ON Basis of economic independence of Azerbaijan Republic, dated May 25, 1991, which was called Banking system and money turnover included these issues as a whole. This article alongside with stipulation of independence banking system and turnover of national monetary unit of Azerbaijan, also established the status and authorities of the National Bank of Azerbaijan. Thus, the National Bank was declared a supreme emission agency which carries out state policy in the sphere of credit, money turnover, settlements and currency relations, regulates activity of banking system as a whole and fulfills duties of reserve bank. Alongside with this, the National Bank was still not established during that period. At the same time, in accordance with the Law of the Azerbaijan Republic On Extra measures on stabilizing economic and socio-political life of the Republic, dated October 8, 1991, regulation of budget and finance, as well as establishment and liquidation of supreme state authorities were defined by the Decree of the President of the Azerbaijan Republic. In accordance with this particular Law, as well as the aforesaid Constitutional Law, pursuant the Decree of the President of the Azerbaijan Republic On Establishment of the National Bank of the Azerbaijan Republic, dated February 1992, the National Bank of the Azerbaijan Republic was established on the basis of the State Bank, Industrial-construction Bank of the former USSR, banks of Azerbaijan Republic of Agro-Industrial Bank of the USSR. As early as August 7, 1992, alongside with the Law of the Azerbaijan Republic On banks and banking activity in the Azerbaijan Republic, was adopted the Law On the National Bank of Azerbaijan. August 15 of the same year equally with ruble national currency of the Azerbaijan Republic manat was issued. December 1, 1992 Resolution On Approval of the Charter of the National Bank of the Azerbaijan Republic was passed by the Milli Mejlis of the Azerbaijan Republic. Such legislative acts, which were critical for banking activity laid the foundation of national bank law and facilitated adaptation of banking activity to a new social-economic conditions. The aforesaid legislative acts determined the National Bank as the supreme state bank, which has exclusive rights of banknotes issue and fulfills the function of reserve system. At the same time, the National Bank was granted regulatory and controlling authorities over the banking system. Effective January 1, 1994 manat was declared the only means of payment of the country. Paragraph II of the Article 19 of the first Constitution of independent Azerbaijan Republic, which was adopted in a referendum, held on November 12, 1995 endorsed once again that the right of issue of banknotes and withdrawal from circulation belongs only to the National Bank. At the same time, this paragraph stipulates that the National Bank is in the exclusive ownership of state. Adoption of the new constitution foretokened beginning of a qualitatively new stage in building of the constitutional state in Azerbaijan. This is why innovations in the sphere of banking legislation was as necessary as in other spheres. Therefore, the Laws On the National Bank of the Azerbaijan Republic dated June 10, 1996 and Banks and banking activity in the Azerbaijan Republic dated June 14 were adopted in a revised form. New bank laws promoted the banking system of the republic to approach progressive world banking experience and establishment of reliable credi organizations. Thus, the corresponding Law on the National Bank stipulates means and methods of pursue of the state monetary-credit policy, which is one of its major functions. This envisages market transactions, interference to currency market, restriction of bank transactions and other measures. Alongside with this, improvement of bank legislation and in general, bank reforms were not suspended even for a while and presently this process goes on.

Address: 32, R. Behbudov Str., Baku Azerbaijan 1014

Phone: +994 12 493 11 22
FAX: +994 12 493 55 41