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Half of Azerbaijani banks' obligations falls to population's deposits

Business Materials 29 March 2010 18:08 (UTC +04:00)

Azerbaijan, Baku, March 29 / Trend N. Ismayilova /

In 2009, domestic funding sources, such as the Central Bank, the National Fund for Entrepreneurship Support, the Azerbaijan Mortgage Fund played a major role in shaping the resource base of Azerbaijani banks.

Funding from external sources has decreased, the Central Bank of Azerbaijan said.

The total deposit base amounted to 4654.2 million manat. The volume of long-term deposits increased by 26.3 percent up to $ 1814.8 million manat.

As a result, the share of capital in the financing of assets increased from 16.3 percent to 18.7 percent. During the year, corporate deposits decreased by 18.8 percent up to $ 2319.3 million manat. Deposits increased by 22.5 percent - to 2334.9 million manat and totaled 24.2 percent of banks' liabilities.

The report said that payment of foreign debts have led to reduction of liquid assets of the banking sector. Despite this, share of liquid assets was maintained at a stable level of 21-22 percent and hit 55-59 percent of total deposits. This figure is higher than in the previous year. It is close to early 2009. It was the result of the bank's expansion policy of refinancing to provide the banking sector with liquidity.

Liquid assets of the banking sector exceeded demand deposits by 94 percent, and current liabilities - 53 percent. Instant liquidity of the banking sector amounted to 76 percent. The share of funds on correspondent accounts remained stable - at 56 percent, the share of cash increased to 31 percent, and securities decreased by 13 percent.

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

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