Azerbaijani banks’ assets hit new record
By Sabina Idayatova
Total assets of Azerbaijan's banking sector reached a new record in 2012, amounting to 16.309 million manats ($20.775 million) as of November 1, compared to 15.998 million manats as of October 1, the Central Bank of Azerbaijan (CBA) said in a report published on its website, according to Trend news agency.
A positive trend on banking assets was seen in 2012. The assets have increased by 17 percent since early last year and by 20.8 percent over a year (13.503 million manats as of November 1, 2011).
Loans allocated to customers in the amount of 10.405 million manats (annual growth of 17.7 percent), investments (over 1.334 billion manats, an increase of 4.65 percent) and the funds held on correspondent accounts (839.9 million manats, a decrease of 14.2 percent) form the basis of the assets of the domestic banking sector, accounting for 63.8 percent of the total. Loans and deposits granted to the financial sector amounted to 742.6 million manats, with an increase of 25.4 percent reported.
Deposits, which total more than 7.202 billion manats, account for a large share (44.16 percent) of liabilities, increasing by 18.4 percent compared to the same period of the previous year. Loans and deposits obtained from the financial sector accounted for over 4.830 billion manats, increasing by 11.8 percent.
Growth in total assets of the banking sector will be at the level of 15-20 percent in Azerbaijan in 2013, CBA Director General Rashad Orujov told Trend news agency last October.
"We believe that we need a moderate, healthy and stable growth -- somewhere around 15-20 percent," he said.
There are 43 banks in Azerbaijan.
According to the CBA board's decision made in July 2012, the minimum total capital of existing banks and authorized capital of newly established banks increased from 10 million manats (over $12.7 million) to 50 million manats ($63.7 million). The new requirement for capitalization of the existing banks will come into force from January 1, 2014.
Russian trade representative in Azerbaijan Yury Shchedrin in
late November welcomed
the CBA's decision, saying it can reduce the total number of
operating banks in Azerbaijan from 43 to 10-15 as a result of
mergers.
"Generally, the CBA's decision was of interest for foreign banks, in particular, Russian ones, and opens up good opportunities," Shchedrin said.
The official exchange rate as of January 2 was 0.785 AZN (manat) per USD.