Capitalization of banking sector in Azerbaijan increased more than 6 percent during year

Business Materials 5 June 2009 19:37 (UTC +04:00)

Azerbaijan, Baku, June 5 / Trend , N.Ismaylova /

The capitalization of the banking sector of Azerbaijan rose 1.7 percent in April 2009 and 6.6 percent compared with the beginning of the year, amounting to 1816.84 million manat, a source at the Central Bank of Azerbaijan (CBA) said on June 5.

According to statistics of the Central Bank, as of 1 May 2009, the capital of 41 banks exceeded 10 million manat per each compared to 43 banks at the beginning of the year. Accordingly, the share of this category of banks in the total capital of all banks fell from 98.6 percent to 97.5 percent.

Four banks (with specific weight of 2.2 percent) formed their capital at 5 to 10 million manat, and one bank (0.3 percent) from 3.5 to 5 million manat.

During this period, 46 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. Permission for banking activity was provided to Nakhchivanbank and Azfinans Bank. Three banks are under process of liquidation. 

Currently 23 banks operate in Azerbaijan with the participation of foreign capital. In seven of them the share of foreign capital is 50 to 100 percent, in 14 banks - up to 50 percent, and there are two local branches of foreign banks.

The number of banks functioning abroad is 9, including 6 representations, two subsidiaries and one branch. Also four representations of foreign banks function in Azerbaijan.

Official rate on June 5 is 0.8036 AZN/USD.

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