OREANDA-NEWS. February 19, 2013. Shaig Alakbarov, the Member of the Supervisory Board of “Muganbank” OJSC spoke about the prospects of financial-banking sector in our country and the development path of the bank he represents.

-       At the end of the last year “Muganbank” OJSC celebrated its 20th anniversary. To your opinion, what kind of corporate traditions should be at a bank which has a 20 years history? Could you please speak about the peculiarities of your bank’s activities?

-       In the first years of the establishment of “Muganbank” OJSC  if the bank’s strategic plans were being set  for a year, today the strategy covers a period of  more than a few years  and is periodically updated. Thus, 15 years ago the activity of banks was different both in the sphere of running operations and banking management.  Azerbaijan banking industry was functioning as a restricted structure in the period of former Soviet Union. Starting from 1992, due to a number of plans carried out in the area of creating a new banking system, the bank sector of our country has become open to the world. In 1990s of the last century, banking operations were carried out too simply in comparison with nowadays. Through the years, as well as the performance of financial-banking sector has been improved and reached the contemporary level meeting international standards.

When speaking of the peculiarities of the activity of “Muganbank” OJSC, it’s worth mentioning that caring for customers and meeting their demands are the first priority for the bank. The bank’s aim is to establish relations with customers in partnership level. It’s also necessary for the bank that its staff have a high work spirit and serve a common objective. To this effect, irrespective of in which area they work, every employee must approach their work honestly, accurately and punctually.

-       Are you satisfied with the performance of the personnel of “Muganbank” OJSC?
-       Yes, I’m satisfied with the performance of our bank’s personnel. I always try to know how they approach to their work and what their new ideas are, in order to find out creative approaches and prevent all obstacles that may hinder the bank’s further progress.

-       How do you anticipate the prospects and future of “Muganbank” OJSC?
-       Primarily and absolutely in having a strong team. I absolutely agree with the saying “Personnel solve everything”. As, the bank’s growth rate depends on the improvement of the staff in conformity with present-day conditions as well as on high corporate spirit. As well as the honestly and fairly established relations with enterprises, organizations and people that the bank cooperates with are very significant. That’s, it’s impossible to achieve success by deceiving somebody. Establishing trustworthy relations with customers and partners is essential so that they mutually benefit from this cooperation and support the bank. The last requirement for the successful future is to have high financial performances. Thus, high financial performances allow the shareholders to better profit by the bank. At the same time, cooperation with international institutions facilitates the institutional development of the bank, i.e., by using new technologies, products and financial instruments the bank keeps up with the time and always takes the lead.

-      What conclusions has Azerbaijani financial-banking sector drawn from the global financial crisis happened in 2008? Which priorities were set in the sphere of risk management in the bank sector after the crisis?
-      Generally, certain risks should be considered while carrying out any financial operation. The respective priorities at “Muganbank” OJSC are to implement an adequate action plan to properly assess the risks, which means to assess and direct them properly. There are always respective risks both in developed and developing countries. Nowadays, there’s a risk management structure engaged in managing risks. So, after the crisis new priorities were set to identify and assess the risks that may occur while carrying out any financial operation, and draw adequate plans.

-      What kind of risks may the financial-banking sector of the country expose to? What is the most primary measure for averting them?
-      Because of the less dependence on foreign financial-investment funds Azerbaijani banks less expose to risks. The process of rebuilding the stock market of our country is going on and hasn’t been competed yet. Besides, integration to the world market isn’t so widespread. As a result of the above mentioned, the Azerbaijani banking has come out of the global financial crisis with less losses. The fact that there aren’t large amounts of funds belonging to foreign institutions on Azerbaijani banks’ portfolios has reduced the risks in the financial-banking sector of our country during the crisis. Although Azerbaijani banks were less affected by the crisis, they made some adjustments in their strategies taking into account the results of the global financial crisis.

-      Which personal, professional and civil characteristics do you appreciate in a person?
-      Patriotism, considerable culture and professionalism.
Propagandizing of our country by the bank officers and by every citizen of our country in general is the most important thing for me. During our business visits to foreign countries, we always try to raise a good awareness on Azerbaijan by acting from the citizenship stand. During these business meetings, at every well-chosen moment, we’re displaying the attributes relating to our country such as various souvenirs symbolizing our national individuality, especially our national currency - Manat from the every nominal. We’re trying to draw attention of our partners to the fact that our national currency Manat doesn’t lag behind Euro both in value and visual image. Every employee of the bank has to realize that we must propagandize our country using every suitable moment, fight against the disinformation spread by Armenian lobby, as well as, make a good impression about Azerbaijan and expand relations.
Professionalism is, first of all, approaching your work honestly.  Every officer of the bank should have self-control inside them. Professional ethics should enable an employee to worthily accomplish his/her work without any direct control. Besides, every officer should create good relations with the staff and draw a conclusion from the good fellowship. Good relations among colleagues develop the exchange of experience among them and facilitate learning work innovations from one-another. From the professional point of view, employees should comprehensively improve and shouldn’t remain within a limited framework.

-      Formerly, you held the post of a Chairman of the Board, but today you’re a Member of the Supervisory Board. When approaching comparatively, which of these responsible functions is more interesting for you to carry out?
-      Of course, these two positions require a different approach. The work of the Board involves the bank management mechanism, while the Supervisory Board is engaged in the common strategy of the bank, in other words, it sets out the bank’s development lines and draws more long-lasting strategic plans. Both posts are interesting and have special peculiarities.

-      Which banking segment do you consider the locomotive of a banking activity?
-      In international practice and global banking, it’s been defined that a bank’s driving force is financing. One of the most important points both for the bank and customers is to meet the customers’ demands.

-      Is there anything that you would like to change at “Muganbank” OJSC but have difficulty in doing so?
-      The common strategy of “Muganbank” OJSC has been adopted, however it’s reviewed from time to time and if applicable, necessary amendments are made.

-      What would you like to wish “Muganbank” OJSC in the next 10 years?
-      Our bank is already known in the banking sector of foreign countries, but I wish our bank to be internationally recognized. I wish that a “Muganbank” OJSC brand be often seen in the world financial-banking sector and that we establish extensive relations with foreign financial institutions. I also wish that every family in our country use our bank’s services.

-      What would you advise to beginners at the bank?
-      I want them to improve themselves. Today, there’re a number of opportunities for doing so. I started my work experience in 1993, while studying at the physics faculty of Baku State University. First, I worked as a computer operator. I’d got my secondary education in Zangilan region and didn’t have a wide experience of using a computer. But, I aimed to perfectly learn banking industry. I was always keeping abreast of commercial developments and was trying to improve my knowledge. Then, I took the position of a transactions officer, later became an inspector at the foreign exchange unit and after some time the chief of the foreign exchange unit. My attitude towards work and fulfillment of all set tasks favored my career and due to this, according to the decision of the shareholders’ general assembly, I was appointed the Deputy Chairman of the Board, then Chairman of the Board. Since 2008, I’ve been working as a Member of the Supervisory Board.

-      Which thoughts can distract you from your work?
-      While being with my family, I’m trying to less think about work; however, it doesn’t every time turn out well, because business calls partly restrict my free time. Unfortunately, my working day sometimes lasts too long, that’s why, I can’t devote enough time to my family.

-      Would you like your son to go on your way?
-      It doesn’t matter which field he’s going to choose for himself. The main thing is that he improve and be a worthy specialist in his work. There’re no boundaries on the way of improving professional skills.  At present I am improving myself, too. Because, the process of improvement is unremitting and every person must continue his work on the way of improvement.

-      Have you already got your important life lesson or haven’t got tired of learning and improving yourself?
-      A man must learn and improve himself. If a man doesn’t improve himself and opposes to this, as a result he lags behind in progress. Furthermore, a man should also teach all his knowledge to others. He should share his knowledge and skills with others as much as possible, so that they also progress and build accurate  plans for the future. I’m of the opinion that it isn’t a professional principle to keep your knowledge and skills to yourself.

-      Thank you for the interesting interview.
-      You are welcome.