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CBA: World financial crisis stabilizes growth of Azerbaijan banking system

Business Materials 29 March 2010 19:31 (UTC +04:00)

Azerbaijan, Baku, March 29 / Trend / I.Khalilova/

Impact of global financial crisis on the Azerbaijani banking system manifested in the stabilization of the growth in basic indicators of the sector compared with previous years, the Central Bank of Azerbaijan (CBA) reported.

Bank assets grew by 13.5 percent (1.4 billion manat), reaching 11.7 billion manat during 2009. The tendency was observed in the dynamics of banks' assets in the first quarter (in connection with the repayment of external debt), in the second quarter gave place to a positive tendency.

Compared with the beginning of 2009, bank loans increased by 17.3 percent (1.214 billion manat), reached 8.230.4 billion as of the January 1, 2010. The volume of loans granted to legal entities grew during the year by 25.7 percent to 5.8 billion manat. Loans to households amounted to 2.171.6 billion manat at the end of the year.

At a result of decline (0.3 percent) in the credit debts and growth (22.5 percent) in deposits of individuals, loan to deposit ratio declined from 122.6 to 99.7 percent. This situation characterizes the decline of risk for refinancing households. The share of business and consumer loans amounted correspondingly to 9 percent and 75 percent in total loan portfolio at the end of 2009. 11 percent of the loan portfolio is real estate loans.

During 2009, the branch network of banks increased from 567 to 626 and bank branches from 99 to 109. 301 branches (48.1 percent) are located in the regions of the country.

March 29, the official exchange rate is 0.8033 manat to $1.

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