Azerbaijani Central Bank sure of Azerbaijani banks’ solvency

Azerbaijani Central Bank sure of Azerbaijani banks’ solvency

Baku, Azerbaijan, Oct. 13

By Ilaha Mammadli - Trend:

According to the stress testing of the banking sector conducted by the Central Bank of Azerbaijan (CBA), the banks will be able to maintain their solvency with the most pessimistic scenario, Elman Rustamov, the CBA chairman of board, said Oct. 13.

Rustamov made this statement at a plenary session of the Azerbaijani Parliament while discussing the draft state budget-2016 and the next three years.

"The capital adequacy level is the main index of the banking sector stability," he said. "It hits 17 percent in Azerbaijan given the international standard of 8 percent."

The total capital of the Azerbaijani banking sector has increased twofold for the last year and reached 4.2 billion manat.

He said that the sector liquidity indices hit 60-70 percent today, which exceeds the minimum requirement twofold.

"The quality of the banks' loan portfolio is satisfactory," he said. "Since early 2015, the Azerbaijani banks have issued the loans worth 7.5 billion manat. "More than 5 billion manat of them account for business loans."

The share of overdue loans in a total loan portfolio of Azerbaijani banks is 6.5 percent.

The CBA has taken a number of measures to regulate the financial capacity of borrowers to preserve the quality of loans within its authority.

According to the CBA recommendation, since early 2015, the banks have restructured about 110,000 loans totaling 600 million manat.

"This mitigated the debt burden of the population," Rustamov said. "The maturities on loans were extended as part of the restructuring. The interest rates were reduced. In some cases, the banks do not charge any interest for the grace period. I think that the banks must be more active in this process. "

In order to achieve such a financial consensus, the optimal balance should be found taking into account the interests of the banks and the population, he said.

Rustamov said that currently the Central Bank together with the government works to improve mechanisms to increase sustainability of the private banking sector. In particular, work on the improvement of Azerbaijani Deposit Insurance Fund is underway and it is planned to expand its coverage.

He said that in 2016, the issue of expanding access opportunities to credit resources will remain in focus in Azerbaijan.

"New initiatives to expand the access of the real sector, in particular small and medium-sized enterprises to sources of financing will be introduced," said Rustamov. "An active dialogue on the issue of interest rates lowering will be continued with banks."

He also mentioned the expansion of mortgage lending among the priorities.

"Until now, as many as 17,500 families received loans worth 700 million manats, and the banks issued mortgage loans worth more than half a billion manats through the Azerbaijani Mortgage Fund," said the chief banker of the country. "Given the increase in the level of employment at the expense of the real estate, revival of mortgage becomes important."

He went on to add that the Central Bank together with the ministry of finance has prepared a proposal to expand mortgage lending and submitted it to the government of Azerbaijan. Proposals include increasing the volume of mortgage loans and lowering of interest rates.

There are 43 banks in Azerbaijan, two of which are state owned ones.

The official exchange rate for October 13 is 1.0475 AZN/USD.

Edited by CN

Flydubai to resume flights at Georgian Batumi International Airport
Flydubai to resume flights at Georgian Batumi International Airport
Autoclave gas blocks plant construction launched in Kazakhstan's Turkestan
Autoclave gas blocks plant construction launched in Kazakhstan's Turkestan
Azerbaijan's Nakhchivan State Statistical Committee shares data on reconstruction of roads
Azerbaijan's Nakhchivan State Statistical Committee shares data on reconstruction of roads
Loading Bars
Latest
Eight missing in Shanghai factory fire
Georgian FM meets Turkish counterpart in Bucharest
UN Environment, WHO support Georgia in deciding on regulation on lead paint
Uzbekistan’s business activity index sharply increases
55 new cases of "double mutation" variant found in UK in latest week
Azerbaijan's banking sector wraps up 1Q2021 with profit
Internet data transmission speed slightly down in Azerbaijan
National Bank of Georgia sells funds at foreign exchange auction
Georgia sees increase in vegetables export
State Customs Committee discloses export of natural gas from Azerbaijan to Georgia
Turkmen Ministry of Agriculture extends tender for purchase of necessary goods
Flydubai to resume flights at Georgian Batumi International Airport
Polymetal International boosts gold output in Kazakhstan, Russia
Brazil reports 3,472 more deaths
Kazakh gas supply company opens tender for construction of operational base
Georgia unveils data on exports of fruits and nuts in 1Q2021
Azerbaijan plans to increase production of fish and fish products
Turkey’s export of furniture and timber to Turkmenistan down
Kyrgyzstan ranks second in world in terms of cheapest mobile internet
Iran's annual exports of dried fruit, nuts grows %42
Georgia opens 69-th online session of UN Economic Commission for Europe
World community must know about Armenian atrocities in Azerbaijan – French lawyer
PM Modi announces India-US partnership on climate, clean energy
Azerbaijan Airlines to start operating special flights to London
Building of Azerbaijan’s Mud Volcanoes Tourism Complex to look like crater from above
Strengthening confidence-building measures in Azerbaijan-Armenia relations most important - Russian MFA
Georgia publishes budget performance report of 1Q2021
French lawyers arrive in Azerbaijan’s Ganja city, shelled by Armenia during war (PHOTO)
EIB financing helped to launch 60 satellites into space in 2020
EIB likely to support dev’t of renewable energy sphere in Azerbaijan
Azerbaijan shares data on number of vaccinated citizens for Apr. 22
Azerbaijan confirms 2,047 more COVID-19 cases, 2,610 recoveries
Baku entitled to demand compensation from Armenia – Russian political analyst
IATA revises 2021 forecasts of world airlines losses
Azerbaijan to open tourism bureau in Israel
Belarus to supply components for Azerbaijan to assemble tractors in 2021
Several more Russian airlines allowed to operate flights to Baku
EIB exploring new project ideas to support digitalization across Eastern Partnership
SOCAR won't participate in sales of Antipinski Refinery’s property
NCOC talks Marine Access Channels Project plans at Kazakh Kashagan field
Azerbaijan's Aghdam in complete ruins - French lawyer
Uzbekistan’s Central Bank notes decrease of inflation rate
EAG working on assessing Turkmenistan's compliance with FATF recommendations
Uzbekistan GTL to buy pipes via tender
Kazakhstan’s KazTransOil to pay out dividends for 2020
Economy Ministry shares data on revenues from Azerbaijan's non-oil and gas sector
Turkmenistan elected member of Executive Board of UN Entity for Gender Equality, Empowerment of Women
Historical monuments in Azerbaijan's Aghdam vandalized - French criminal justice attorney
Kazakhstan’s KazTransOil decreases oil transshipment volumes in 1Q2021
Turkmenistan increases processing of agricultural products
Turkmen company exports tomatoes to Austria
Autoclave gas blocks plant construction launched in Kazakhstan's Turkestan
Azerbaijan's Nakhchivan launches new communication facilities in 1Q2021
Azerbaijan's Nakhchivan sees decrease in insurance portfolio for 1Q2021
Iran’s Bahar Azadi gold coin price again falling
Azerbaijan's Nakhchivan State Statistical Committee shares data on reconstruction of roads
Equinor to electrify over 35% of its total oil & gas output base by 2025
Russia leads among countries exporting goods to Azerbaijan
Iran’s CBI allocates funds for import of essential products
Output from Georgian Enguri HPP to increase after reconstruction - Director of Enguri HPP
Azerbaijan shares footage from Jabrayil's Shahverdili village (VIDEO)
Tesla opens Tel Aviv pop-up store
Russian airline receives permission to operate flights to Uzbekistan
Uzbekistan’s 3M2021 retail trade turnover of small business decreases
Number of bank accounts increases in Azerbaijan’s Nakhchivan
American Airlines loss narrows as travel demand picks up
Azerbaijan jointly with Russia sets up car manufacturing enterprise
Number of innovative companies worldwide grows
Kazakhstan boosts production of coal, some petroleum products
Swiss president heads for damage-control EU summit
Etihad Airways to stop operating Boeing 777-300ER jets this year
Installation of info boards on roads leading to Azerbaijan's liberated lands continues (VIDEO)
French human rights activists visiting Azerbaijan's Aghdam (PHOTO)
Georgia increases imports of tomatoes from Azerbaijan
Israeli airline to organize charter flights to Uzbekistan’s Tashkent
Kazakh president points out need to timely oversee major oil projects
US must choose between real ally Ankara and fictional history - Turkish presidential administration
Kazakhstan's trade with Italy down
Uzbekistan boosts import of electric cars
Azerbaijan names winner of auction for right to develop clay field in Goygol
Azerbaijan implementing "Smart Grid" concept in Sugovushan settlement (VIDEO)
Кazakh Electricity Grid Operating Company to buy spares via tender
Uzbekistan exports dried fruits to Malaysia through Turkey
Area of agricultural land in Iran equipped with modern irrigation systems growing
ADB introducing blockchain-based food tracking project in Azerbaijan
Iran reveals COVID-19 data for April 22
Azerbaijan publishes 1Q2021 data on lending to economy
Azerbaijan clears Sugovushan, Talyshkend from mines for construction of power transmission lines (PHOTO)
Several facilities put into operation in Iran's agricultural sector
Azerbaijani president, first lady attend ceremony of laying foundation of Mud Volcanoes Tourism Complex (PHOTO)
Georgia exports ignificant number of tractors, trucks to Azerbaijan
International revenue of Halliburton up amid increased software sales
Iran launches implementation of project on Cheshmeh Khosh oil field
Halliburton sees decrease in operating income
Azerbaijani banks' demand for foreign currency exponentially up
Turkmenistan increases production of vegetables, berries
Uzbek-Korean JV announces tender for consumables
Earth Day 2021: An unprecedented opportunity to restore our Earth
Azerbaijan's Nakhchivan launches work on industrial projects in 1Q2021
Georgia reports 1,226 new cases of coronavirus for April 22
All news