Azerbaijan, Baku, July 9 / Trend N. Ismayilova /
According to the international rating agency Fitch Ratings, liquidity risk and refinancing in Azerbaijani banks are at the background, Moscow's Fitch Ratings banking analytical group head Vladimir Markelov told Trend.
He said that Azerbaijani Central Bank actively assist in stabilizing the situation in the banking sector. It refinanced a number of banks with high external debt burden, thus allowing them to refinance foreign loans.
According to the agency, liquidity risk and refinancing are at the background, since much of the external debt of the banks were repaid. The "liquidity cushion" of assets increased due to lower demand for credit in the economy and also due to tighter control of banks in respect of loan during crisis.
About 47 banks have licenses to conduct banking activities in the territory of the republic. Total assets of Azerbaijani banks as of June 1, 2010 amounted to 12.042 billion manat. In May, the capitalization of the banking sector in Azerbaijan amounted to 2,046.67 million manat.