Azerbaijani banking sector capitalization increases by half in 2008

Business Materials 5 February 2009 16:11 (UTC +04:00)

Azerbaijan, Baku, Feb. 5 / Trend , N.Ismayilova /

In December 2008, the capitalization of the Azerbaijani banking sector increased by 4.8 percent and by 47.8 percent as for Jan. 1, 2009, the National Bank of Azerbaijan (NBA) said.

As for Jan. 1, 2009 the capital of 43 banks reached 10 million manat compared to early 2008. The aggregated capital of banks increased from 97.9 percent to 98.6 percent.

The capital of two banks (with 1.1 percentage) was formed from 5 million to 10 million manat, one bank (0.3 percentage) paid it off from 3.5 million and 5 million manat.

In 2008, forty-six banks held licenses for banking activities in the country. The licenses of the Pochtbank and Atlantbank were canceled due to non-fulfillment of capitalization requirements. The NBA canceled the licenses of these two banks on July 9 under in the aftermath of arrangements to reconstruct the banking system, secure financial stability and increase the efficiency of financial mediation.

At present, seven banks function with limited license. Due to this reason banks were not received to the membership of the Deposit Insurance Fund [sanctions were imposed on the banks due to discrepancy in the minimum size of aggregated capital that is 10 million manat]. The limits were imposed on every bank individually.  

On Feb. 5 the official exchange rate is 0.808 manat to $1.

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