National Bank of Azerbaijan Commences Development of New Strategy for Capitalization of Bank System
Azerbaijan, Baku / corr Trend I.Khalilova / The National Bank of Azerbaijan (NBA) commenced the development of a new strategy on further capitalization of a bank system, the NBA said.
"The further promotion of the bank's capital is currently being studied," the NBA said.
Current level of the banks' capital is estimated as medium by European standards, but considered as insufficient for the capitalization of the banking sector of the country in a dynamically developing economy.
There is not a schedule for development of banks' capital, because the ceiling of AZN 10mln was defined on 1 July 2007 and not all banks executed it. Therefore, the next requirement will not be carried out on 1 January 2008 as scheduled. So far, the schedule of capital increase has been determined through six-month interval.
However, there is a necessity for further increasing capital in connection with the rise of risk in the banking sector, which is linked with a high growth rate of bank indices. Aggregate bank assets exceed AZN 51bln, credit investments by AZN 3.3bln, community deposits by AZN 1.09bln, and the joint capital of banks by AZN 892mln.