Azerbaijan, Baku, August 5 /Trend, I.Khalilova/
Pre-crisis measures taken by the Central Bank of Azerbaijan (CBA), as well as effective package of measures to enhance financial stability enabled to achieve one of the main goals - financial stability, the Central Bank said.
"Unlike most countries, the cases of bankruptcy or financial disasters were not observed in the banking sector of Azerbaijan, the CBA said. - Preventive measures by the Central Bank allowed the country's banking sector to be prepared to the global crisis."
Due to this, during the crisis, the banking sector had no problems with the implementation of obligations before contractors. The banking system continues to successfully carry out its primary function, that is a function of financial intermediation, demonstrating stable growth dynamics. Last year the community deposits grew by about 34 percent and the loan portfolio by 38 percent.
"The growth of deposits once again testifies the high public confidence in the banking sector. The exchange rate of manat in relevant to major convertible currencies was protected from devaluation, which ultimately prevented the rise in prices, reduction of welfare and impairment of deposits," said the CBA.
According to experts of the Central Bank, the results achieved in promoting stability of the system were also highly assessed by the international financial institutions. In addition, the international rating agency Fitch in May 2010 raised the country's sovereign rating to investment rating (BBB-).
The Central Bank will continue the policy of strengthening stability and financial stability of the banking sector, as well as institutional development.
Currently, CBA is not considering closing banks, since the financial situation of institutions that form the banking sector is stable and does not cause fears.
About 47 banks have licenses to conduct banking activities in the territory of the republic. Total assets of Azerbaijani banks as of July 1, 2010 amounted to 12.18 billion manat, which is 1.2 percent more than June and 4.4 percent than the beginning of the year.
Official rate on August 5 is 0.8034 AZN/USD.