Azerbaijani bank’s liquidity twice hits Central Bank’s norms

Business Materials 18 April 2009 18:24 (UTC +04:00)

Azerbaijan, Baku, April 18 / Trend , N.Ismayilova/

The Azerbaijani Kapital bank's minimum liabilities before foreign banks testify protectability of people's deposits at this bank, the bank's Board Chairman Rauf Rzayev said in his interview with "Banks and Business" magazine.

"Citizens' funds at Kapital bank are securely protected. Kapital bank is the country's giant backbone bank and we care about preserving the bank's high image," Rzayev said.

On the other hand, Kapital bank is a profitable organization. The bank's revenues increased over 63 percent in 2008 compared to 2007. Third, at present the bank has not any debts before foreign banks, except one transaction worth 12 million from the Black Sea Trade and Development Bank.

The bank received these funds for 6 years to develop own mortgage loaning program and they will be returned with 11 equal parts.

Besides, the government is implementing social programs via Kapital bank. They are social payments, benefits and pensions which are issued via the bank's ATMs in the country's 28 regions. The bank also participates in loaning giant economic projects via which new jobs appear in the country.

Recently, the bank has maintained liquidity at 60-70 percent, while the Central Bank's demand is 30 percent. Lately, the bank could considerably increase its capital. Thus, the bank's own capital was only 8 million manat in 2004, but now it totals 78 million manat.

On April 18, the official exchange rate is 0.8032 manat to $1.

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