BAKU, Azerbaijan, October 18. The banking sector of Azerbaijan is on the border of low and medium decentralization, Trend reports citing the intersectoral financial flows of the Central Bank of Azerbaijan (CBA).
"The banking sector of Azerbaijan is characterized by a low and medium level of concentration. This is due to the fact that a large number of small and medium-sized banks operate on the market," the CBA said.
According to the Herfindahl-Hirschman index, used in international practice to assess the level of concentration of the banking sector, the sector for the loan portfolio amounted to 1,015 (low concentration level, at the end of 2021 - 1,017), for the deposit portfolio - 1,805 (average level, at the end of 2021 - 1,741), for assets - 1,576 (average level, at the end of 2021 - 1,567) from January through June 2022, the CBA stated.