Capitalization of Azerbaijani banking sector increases by 10 %
Azerbaijan, Baku, Oct. 22 /Trend/
In August 2012, capitalization of the banking sector in Azerbaijan increased by 2.5 percent, by 9.7 percent compared to the beginning of the year, and decreased by 0.2 percent compared to August 2011, amounting to 2324.6 million manat as of September 1, 2012, a statistical report of the Central Bank of Azerbaijan (CBA) said.
According to the CBA, number of banks with capital exceeding 10 million manat hit 39 in August, remaining the same compared to July, decreasing by one bank compared to June and increasing by 3 compared to end of 2011.
Share of this category of banks in the total volume of capital of all banks was 99 percent in August compared to 99.5 percent in the beginning of the year.
The capital of two banks ( with share of 0.8 per cent) was formed in the range of 5 to 10 million manat, one bank (0.2 percent) - from 3.5 to 5 million manat and another bank - to 3.5 million manat.
According to the decree of the Central Bank, the minimum total capital of existing banks and the capital of newly established banks was increased to 50 million manat. The decision of the Central Bank was adopted on July 25 2012.
The new regulation for the minimum total capital will take effect on January 1 2014. Today, the minimum requirement for capitalization of both existing and newly established banks is 10 million manat.
The transition period provides banks with sufficient time to implement strategies to correspond with the new capital requirements and for the gradual implementation of capital infusion. Studies show great potential in the banking sector to meet the new requirements.
The official exchange rate on October 22 is 0,785 AZN/USD.