Azerbaijan, Baku, Dec. 16 / Trend N.Ismayilova /
The number of unprofitable banks this year remained on level with 2008 due to increases in expenses related to improving banking infrastructure under the supervision of the Central Bank of Azerbaijan (CBA), CBA Credit Organizations Supervision Department Director Rashad Orujov said.
"The CBA demanded to improve corporate and risk management, to renew operating systems," he said.
The bank had additional expenses for establishing a financial reserve despite investment costs, Orujov added.
The number of profitable banks in Azerbaijan was 38 in September 2009. The total profit of the banking system increased by 25.2 percent compared to Oct. 1 2008 and 13.4 percent compare to earlier this year, reaching 209.40 million manat. In October, the total profits of banks increased by 12.2 percent.
The number of unprofitable banks remained unchanged compared to early 2009. Eight banks lost 9.62 million manat, which is 22 percent less than the figure as of Oct. 1, 2008. In September bank losses increased by 7.1, and over nine months by 30 percent.
According to the CBA, one more bank concluded its liquidation at the end of the third quarter, while two are still in process. On Jan. 1, 2009, three banks were in the process liquidation.
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