Azerbaijan, Baku, 27 November / Trend , corr. I.Khalilova /"The National Bank of Azerbaijan (NBA) enhances the control over governance of risks system. This system must be adequate to NBA's business," Rashad Orujov, the Director of Banking Supervision Department of NBA, said.
Currently, credit portfolio make up 65 percent of bank assets.
"Now such a situation is considered as a normal index, as banks prefer to allocate funds into more profitable assets, Orujov said. The most profitable and rapidly developing assets are credits".
According to Orujov, however, banks' ratios differ. The composition of banks' balances from the point of view of assets and liabilities is defined in accordance with the internal policy of every bank. Banks independently define their operation activity, but the index totals in the average 65 percent.
Consumer credit takes almost 30 percent of bank system credit portfolio. The figure in some banks touch 60-70 percent.
As for 1 November 2008, the credit portfolio of banks made up AZN 6522,7mln and increased by 1.2 percent within a month and by 43.2 percent since the beginning of the year.
NBA denies the statements that some banks suspended lending due to the global processes. Orujov noted that banks issued almost AZN 400mln within a month and 82mln of which fells on consumer lending and the rest on business credits. At the same time, the number of credit receivers made up 48,000 individuals.
The percentage of investments in the total liabilities of the banking system totals 20 percent. From the point of vie of diversification of liabilities it is also a normal index.
"The main demand of NBA is to create a right system of governance of risks. We demand an adequate governance of risks system from banks," Orujov said.
On 1 November, the portfolio of investments of individuals in the banking system of Azerbaijan totaled AZN 1,794mln, reducing by 5.1 percent within a month and 22.2 percent since the beginning of the year.
On 27 November, the official currency rate is 0.8079 AZN/USD.
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