Major tendencies in different segments of monetary-credit system
Money mass Рњ2 grow
The banks of Azerbaijan increased crediting in economy;
Deposit base of the Azerbaijani banks grew;
Trading sessions on placement of T-bills were held in the stock market. The NBA continued the placement of short-term notes in the Baku Stock Exchange.
Currency market and rate of AZM
In August 2006 the International Bank of Azerbaijan became a leader at the Baku Interbank Currency Exchange. The IBA was a leader at the exchange currency market of Azerbaijan in 2003 (December, November, September, July, August) and 2004 (except October), in 2005 excluding December, and in January to July 2006 (except April and May).
Amount of currency trading sessions at BBVB in August 2006
|
Amount, in mln USD |
Rise in August 2006 | |
|
In total, (BEST) |
$383,206 |
3 times |
Along with the IBA, the top five included Bank Standard (25.23%), Khalgbank (5.41%), Technikabank (5.09%) and UniBank (2.62%).
As a result of June they were the International Bank of Azerbaijan (24.93%), Bank Standard (24.5%), Bank of Baku (9.1%), Kapitalbank (9.4%) and UniBank (7.25%).
|
Bank |
Share in total, % |
|
IBA |
48,31 |
|
Bank Standard |
25,23 |
|
Khalgbank |
5,41 |
|
Technikabank |
5,09 |
|
UniBank |
2,62 |
In August 21 member-banks of the currency section participated in the auctions. They concluded 113 deals at 46 trading sessions with the total amount of $383,206m.
Deals with EUR were carried out in the amount of 7,956 AZN. As compared to July 2006 the amount of trading sessions with the foreign currency at BBVB rose 3 times. As a result of 8 months the turnover of the foreign currency section f the BBVB made up 849,723m manats, or 94.31% more than 2005.
The exchange rate of the national currency rose 0.68%. The rate of US dollar dropped from 0,8869 manats to 0.8809 manats per 1 USD. In the end, the average sustained rate of AZM in regard to USD made up 0,8858 manats per 1 USD in August, whereas as of July it was 0,8906 AZN. In general, over the past year the exchange rate grew 4.82% in respect to manat.
Monetary market
In January to August 2006 the amount of money mass in Azerbaijan rose 77.3%.
As of 1 September 2006 money mass (M2) made up 1412.4m manats, against 796.7bn manats of 1 January and 1294.2m manats as of 1 August 2005. In August the figure rose 9.1%.
In this period the amount of cash money (Рњ0) rose 67.2%, while as compared to the beginning of the year it grew 72%. Cash money increased 6.2% in August. As of 1 September 2006 M0 turned out at 915m manats against 547.4m manats fixed as of 1 January and 861.7m manats fixed as of 1 August 2005.
In this period the amount of non-cash money rose 99.6%, while in August rise was equal to 15%. As of 1 September 2006 non-cash funds grew to 497.5m manats against 249.3m manats fixed as of 1 January and 432.5m manats fixed as of 1 August 2005
According to the National Bank of Azerbaijan, in January to August 2006 the amount of the money base dropped 43.8% amid 3.83% rise in July.
In this period the reserve money rose 387.8m AZN, comprising 1273.6m AZN against 885.8m AZN as of early 2006. As compared to last year, manat base rose 56.8%, or 461.6m AZN.
As of 1 September 2006 money base in manat made up 1137m AZN against 687.8m AZN against the beginning of the year displaying 65.3%-growth (449.2m AZN). As compared to last year the money mass rose 53.3%.
Parameters of the monetary market
|
Объем, 01.07.06 | |
|
Money mass in extensive understating (Рњ3) |
2664,1 |
|
Money mass on manat (Рњ2) |
1137,0 |
|
Cash in manat (Рњ0) |
915 |
|
Non-cash in manat |
497,5 |
As of 1 September 2006 NIR comprised 1588.2m manats against 1884.5m manats as of 1 August and 1035.9bn manats as of 1 January 2006. Net internal asserts constituted 1337.4m manats against 1613.5m manats as of 1 August and 930.76bn manats as of 1 January 2005, the NIR of commercial banks made up 257m AZN against 278m AZN and 108.8m AZN respectively
Net internal assets constituted 1075.9m AZN against 665.9m AZN as of 1 August and 805.9m AZN as of 1 January 2006. The expanded money mass (M3) as of 1 September 2664.1m AZN against 2550.2m AZN as of 1 August and 1841.8m as of 1 January 2006.
According to the NBA, I January to August 2006 the expanded money mass comprised 2664.1m manats.
Credit market
In August the Azerbaijani banks increased crediting economy by 5.1%, while in the first 8 months of 2006 it grew 30.2%.
As of 1 September 2006, 1876.9m manats of total credits were allocated (including 799.4m manats in national currency and 1077.5m manats in hard currency) against 1785m manats (including 762.9m manats in national currency and 1022.5m manats in hard currency) as of 1 August and 1441m as of 1 January 2005. Overdue credits and loans comprised 63.5m manats against 63.1m manats as of 1 July and 68.2m as of 1 January 2006. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit
The short-term credits comprised 939.5m manats (including 47.5m manats of overdue loans) against 944.7m manats (including 47.5m manats of overdue loan) as of 1 August and 913.3m manats (48.3bn manats) as of 1 January 2005. As 1 September 55.8% of short-term crediting and 68% of overdue credits fell on hard currency. The long-term credits constituted 937.3m manats (16.1m manats) against 840.3m manats (16m manats) as of 1 August and 527.7m manats (19.6m manats) as of 1 January 2005. As of 1 September 59% of long-term credit and 72.7% of overdue debts fell on hard currency.
As of 1 September two public banks allocated credits of 871.2m manats (+3.7% in August and +16.4% over 8 months of 2006), private banks 946.5m manats (+6.84% in August and +44.9% over 8 months).
As of 1 September 2006 credit portfolio of banks with foreign capital made up 415.5m manats (+7.5% and +57.7% respectively), including 38.7m manats loaned by foreign banks (+10.6% and 49.4% respectively). As of 1 September credit portfolio of non-bank credit organizations made up 59.2m manats against 39.6m manats as of 1 July and 39,600 AZN as 1 January.
As of 1 September average annual rate of banking crediting in the economy comprised 16.31% in national currency against 16.05% as of 1 August and 15.14% as of 1 January 2005. With consideration of inflation rate of 5.2% in first 8 months of 2006, real credit rate made up 11.11%. The average annual rate on banking crediting the economy made up 17.15% in foreign currency against 17.46% as of 1 August and 17.11% as of 1 January 2005.
As of 1 September the average annual rate of banking crediting of legal entities made up 14.89% in national currency against 14.74% as of 1 August and 14.36% as of 1 January 2005, while real rate was 9.69%. The average annual rate of banking credit of legal entities constituted 15.05% in foreign currency against 15.33% as of 1 August and 15.37% as of 1 January 2005
As of 1 September the average annual rate of banking crediting of physical entities made up 19.95% in national currency against 19.59% as of 1 August and 17.36% as of 1 January 2005, while real rate was 14.75%. The average annual rate of banking credit of legal entities constituted 21.56% in foreign currency against 21.69% as of 1 August and 21.31% as of 1 January 2005
Banking sector
In August the deposit base of Azerbaijani banks grew 3.59%, while since the beginning of the year its growth has made up 35.13%.
As of 1 September the total amount of bank deposits and savings of legal and physical entities made up 1749.1m manats against 1668.5bn manats as of 1 August and 1294.4m manats as of 1 January 2006. 481.1m manats of the total sum fell on manat reserves, while the rest - on hard currency. In August the growth of deposits in manat made up 5.2%.
In August the amount of savings and deposits of physical entities grew 4.9% amid 0.54%-rise in deposits of the legal entities. The savings and deposits of legal entities of individual clients increased 35.1%, while deposits of corporate clients grew 40.15%
As of 1 September the amount of savings and deposits of physical entities at banks grew to 668.4m manats against 643.4m manats as of 1 August and 494.5m manats as of 1 January 2005. As of 1 September the amount of deposits of legal entities made up 1112.1m manats against 1106.1m manats as of 1 July and 793.5m manats as of 1 January 2006.
As of 1 August 130.8bn manats (+88.7% a month) of savings and deposits of physical entities was implemented in national currency, while 512.6m manats (+7.7%) in hard currency. 365.5m manats of deposits of legal entities (+44.3%) were implemented in manats, while 740.6bn manats (+20.9%) in hard currency.
As of 1 September 2006 the average rate of bank deposits of physical entities in the national currency comprised 11.03% against 10.86% as of 1 August and 8.92% as of 1 January 2006. The real deposit rate made up 5.83% amid real inflation ratio was 5.3%. The average rate of banking deposit in hard currency was 11.06% against 11.15% as of 1 July and 10.19% as of 1 January 2006
As of 1 September the average rate of bank deposits of legal entities in the national currency comprised 8.99% against 8.61% as of 1 August and 7.41% as of 1 January 2006 while real rate was 3.79%. The average rate of banking deposit of corporate client in hard currency is 6.73% against 7.74% as of 1 August 2006 and 6.83% as of 1 January 2006.
As of 1 September the average rate of bank deposits of physical entities in the national currency comprised 12.11% against 12.12% as of 1 August and 10.70% as of 1 January 2006, while real rate was 6.91%. The average rate of banking deposit of individual client in hard currency is 11.47% against 11.41% as of 1 August and 10.71% as of 1 January 2006.
As f 1 August 136 credit organizations had licenses issued by the National Bank of Azerbaijan for implementing of bank activities. These are 92 non-bank credit organizations and 44 banks.
The number of bank branches functioning in the country amounted to 395, including 125 branches of state-run banks, 270 local banks. A total of 40 banks have their branches and 49Рё units.
Stock market
In August 2006 the Ministry of Finances held 4 auctions on placement of T-bills were held at the secondary market in the amount of 21m manats, of which 3,654,800m manats, or (17.4% of entire issue) was placed. The average sustainable profitability on the results of shareholders was equal to 11.50% per annum. Only one deal with T-bills was held at the secondary market in the amount of 401,326 AZN.
The National Bank held 5 trading sessions on the placement of T-bills. The emitter succeeded to place 127,693,800 manats (75% of the entire emission) of the total emission of 170m manats issued during 5 auctions. The average sustained profitability ratio on the results of auctions 13.91% per annum. In August 21 deals worth 15,461,122 AZN wee held at the secondary market.
In August 5,956,164 manats was placed at the corporate shares market, while at the secondary market on short-term notes the placement amounted to 8,307,672 manats. Initial placement of corporate bonds on 3 deals comprised 6,090 manats and one deal 2m manats, while at the secondary market it was fixed at $45,718 and 159,025 manats.