BAKU, Azerbaijan, October 19. Signs of low concentration are observed in the system of Azerbaijani NBCOs [Non-Banking Credit Organizations], Trend reports on October 19 via the report of the Central Bank of Azerbaijan (CBA) on analysis of intersectoral financial flows.
"Such low concentration is shown by the Herfindahl-Hirschman index, widely used in international practice [to assess the level of concentration of the banking sector]. This is due to a large number of small and medium-sized NBCOs in the sector. So, in terms of the share of assets and the loan portfolio, the index amounted to 514 and 568, respectively,” the report said.
“There are only 13 NBCOs with assets exceeding 10 million manat ($5.8 million) and share of 73.6 percent (323.8 million manat or $190.4 million) in the sector, while 25 NBCOs (which account for only 5.3 percent of the sector) have assets of less than two million manat ($1.18 million),” added the report.