Azerbaijan, Baku, 3 Dec /corr. Trend N.Ismaylova / In October, the capitalization of the Azerbaijani banking sector increased by 3.7% and as of 1 Nov by 47.1% as compared to the beginning of the year, the National Bank of Azerbaijan said on 4 Dec.
According to the data provided by the National Bank of Azerbaijan, as of 1 November the capital of 41 banks exceeded AZN 10mln. Their specific weight in the aggregate amount of capital of all banks increased from 94.6% to 97.9%. Three banks with the special weight of 1.8% have formed their capital between AZN 5 and 10mln, one bank - AZN 3.5 and 5mln.
During this period, 45 banks held a license for banking activities in the country. Their number reduced as a result that the license of two banks, Poctbank and Atlantbank, is invalid. The NBA liquidated the licenses of these two banks from 9 July. Sanctions are active with regards to seven banks. Due to this, they could not become the members of the Deposit Insurance Fund. The period of limitations for each bank was individual.
This year, the National Bank does not plan to make new requirements to the capital of the banks, but intends to devise strategy for their further capitalization. Within the complex measures devised by the NBA, possibly changes will be made to the requirements towards capitalization in order to protect the internal market from the global crisis.
There are 23 banks with the participation of foreign capital in the country. The special weight of foreign capital at 6 banks was formed in the amount of from 50% to 100%, at 14 banks - to 50% and two local branches of foreign banks.
The number of banks functioning abroad is eight, including five representations, two daughter banks and one branch. In addition, four representations of the foreign banks function in Azerbaijan.
The official rate on 3 Dec is 0.8091 AZN/USD.
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