Azerbaijani banks' foreign shareholders up investments in capital

Business Materials 19 August 2010 18:51 (UTC +04:00)

Azerbaijan, Baku, Aug. 19 / Trend N.Ismayilova /

Indicators of capital adequacy of the Azerbaijani banking sector is at an acceptable level, and the first degree capital amounted to 83 percent of the total capital, the Central Bank of Azerbaijan's (CBA) report on financial stability in the first half of 2010 says.

The banks ' total capital increased by 2.3 percent compared to early 2010 and amounted to 1.8 billion manat, while the annual growth rate hit 9 percent. Persistence of capital has been provided, mainly at the expense of shareholders. The banks' authorized capital grew by 12.6 percent (146.8 million manat) and accounted for 73 percent of the capital compared to 2009.

During the report period, the banks' foreign shareholders increased investment in the authorized capital by 16.8 percent (34.4 million manat) and the figure amounted to 238.8 million manat, or 18.2 percent of the total share capital of the banking sector.

Capital adequacy of the banking sector amounted to 17.2 percent against the regulatory requirements of the CBA at 12 percent. Under the CBA's estimates, the presidential decree on exemption from taxation of profit insurance of companies and banks aimed at the capitalization was the impetus for the creation of capital in the amount of 170 million manat.

The official exchange rate is 0.8038 manat to $1 Aug. 19.

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