Azerbaijan, Baku, March 29 / Trend N. Ismayilova /
Indices of Azerbaijani banking sector's capital adequacy is at an acceptable level, the Azerbaijani Central Bank's report on financial stability as of 2009 said.
The total capital of banks increased by 17.9 percent or 267 million manat and hit 1.759 billion manat compared to early 2010. Significant growth of capital adequacy was fixed in the second quarter. Growth of capital during this period amounted to 6 percent or 94 million manat.
Capital adequacy of the banking sector amounted to 17.8 percent compared to the minimal norm of 12 percent. According to the bank, the presidential decree on exemption of insurance companies and banks from profit taxation, aimed at the capitalization, was the impetus for the creation of capital to the amount of 170 million manat. Tax incentives have been introduced for a period of three years since 2009. Income tax in Azerbaijan is 20 percent from 2010 (previously the rate was 22 percent).
As of March 29, the official exchange rate is 0.8033 manat to $1.