The Azerbaijani Deposit Insurance Fund (ADIF) and the Central Bank of Azerbaijan are discussing the introduction of deposit insurance for legal entities.
According to a Report correspondent in Shamakhi, Azer Amirov, Director of the ADIF’s Legal Department, made the statement at a forum marking National Press Day.
According to him, various countries set compensation limits for both individuals, private entrepreneurs, and legal entities.
“That is, there are models that compensate only a certain portion of their deposits. In the future, a more in-depth study of these models and their legislative codification are possible. Work is underway in this area, and current challenges are also being taken into account. We are also discussing this issue with the Central Bank. I believe a more mature approach is needed in this area, as full insurance of blocked funds for legal entities can create serious insurance risks,” he added.
Amirov noted that this issue requires careful analysis and assessment before implementing this instrument. According to him, insuring legal entities, unlike individuals, has its own specifics and risks: “From an economic perspective, legal entities’ funds are more dynamic. It’s likely that regulators and legislators also approach the issue from this perspective. For example, for legal entities, keeping funds in deposit accounts, for example, with a 12% yield, may be more attractive. However, from a national economic perspective, keeping these funds in circulation is considered more expedient. If we approach the issue solely from the insurer’s perspective, it would be possible to insure legal entities’ deposits, collect more insurance premiums, and improve the fund’s financial stability. However, the economy is a holistic system. Changes in one area can affect another. Therefore, such decisions should only be made after a comprehensive analysis.”
Balochistan Security Update | 25 Jul 2026
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