Azerbaijan stands ready to support banking system: Standard & Poor's
Azerbaijan, Baku, June 9 / Trend , I.Khalilova/
The banking system of Azerbaijan (the sovereign rating at BB + / Stable / B) is characterized by a high level of dollarization, economic dependence on oil and concentration of banks in selected industries, the report by Standard & Poor's says.
"However, it should be noted good prospects for macroeconomic growth in the medium term, a low dependence of banks on foreign borrowing and speculation, as well as an adequate level of capitalization and financial indicators of banking system," Standard & Poor's experts believe.
For these reasons, the banking system of Azerbaijan is still to a lesser extent influenced by global economic crisis than the banking systems of many other CIS countries.
The dominant position in the banking sector took the largest state bank is the International Bank of Azerbaijan, which share in the assets of the banking system is 43 per cent, there are some 45 private banks at the next level seven per cent each.
More recently, Azerbaijan has ranked a leading place in the region to attract foreign investments. However, they were distributed unevenly in the economy sector, which is dominant in the oil industry (its share in GDP was 60 per cent in 2008)," the report says.
In accordance with the criteria of the agency, Azerbaijan belongs to the category of countries "ready to support" the banking system.