"Non-oil" depth of Azerbaijani banking sector equals 71%

Photo: "Non-oil" depth of Azerbaijani banking sector equals 71% / Economy news

Gabala, Azerbaijan, June 24
By Zulfiyya Gurbanova, Emin Aliyev - Trend:

The development dynamics of Azerbaijan`s banking sector continue to remain positively stable.

The General Director of the Central Bank of Azerbaijan Rashad Orujov said at a "Development of interbank cooperation between Russia and Azerbaijan" round table within 5th Azerbaijani-Russian interregional cooperation forum, which is underway on June 23-24 in Gabala.

"Over the past 15 years the assets of the banking system increased by more than 20 times. The average growth dynamics in the last ten years has been consistently above 40 percent," he said

The total depth of the banking system (the ratio of assets to GDP volume) is about 37 percent, according to Orujov.

"But taking into account that the banking sector operates mainly with the non-oil sector of the economy, then, the not less important indicator becomes the ratio of assets to non-oil GDP, which is already 71 percent. Since 2008, despite the global financial crisis, the depth of the banking system showed stable growth. The lending activity remains high - the ratio of banks' loan portfolio to non-oil GDP of the country has already exceeded 50 percent. The capital base is stable and total capital of banks increased in respect of non-oil GDP by two percentage points, reaching 15 percent. If we pay attention to the country's economic growth, the growth of the banking sector exceeds the rate of economic development of the country more than twice," the CBA General Director said.

As of May 1, 2014, the total volume of assets of 43 operating banks in Azerbaijan amounted to 22 billion AZN, the loan portfolio - 16.25 billion AZN, the total amount of capital - 3.61 billion AZN.

The official exchange rate on June 24 is 0.7843 AZN / USD.

Edited by CN

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