ADB: Unified settlement center being created in Azerbaijan's securities market
The Asian Development Bank (ADB) supports creating a unified settlement center in Azerbaijan to modernize the securities market.Summary
According to the Asian Development Bank (ADB), the National Depository Center (NDC) in Azerbaijan is being granted the right to provide limited banking services, including clearing and settlement, to replace commercial banks. This change will allow the NDC to manage cash accounts and operate an embedded funds transfer system, enabling a "single window" for transactions. The ADB proposes a phased infrastructure development plan: in the short term, the NDC will replace commercial banks as the settlement agent, while in the medium term, a central counterparty (CCP) will be created to comply with international standards and reduce costs. The bank also suggests providing intraday liquidity to ensure uninterrupted settlements and outlines a comprehensive set of reforms to modernize the financial system.
(Sourceļ¼Report.az)