Azerbaijani banks mainly form resource base thanks to deposits
Azerbaijan, Baku, Aug. 20 / Trend N.Ismayilova /
Deposits become the main source of the formation of the Azerbaijani banks' resource base in the first half of 2010, the Central Bank of Azerbaijan's (CBA) report on financial stability says.
The total deposit base of banks grew by 57.2 million manat compared to early 2010, reaching 4.7 billion manat. The share of deposits in the total liabilities amounted to 46.5 percent.
In the first half of 2010, the volatility observed in the dynamics of deposits of legal entities. Their volume decreased by 7.4 percent and amounted to 2.1 billion manat. In annual terms, deposits increased by 22 percent and amounted to 21.2 percent in total bank liabilities.
During the report period, deposits grew by 9.8 percent, reaching 2.5 billion manat, and their share in total liabilities amounted to 25.3 percent. Growth rate reached 32.4 percent compared to the previous year.
Improving the structure of the deposit portfolio on maturity shows increased confidence in the banking system of the country. The overall proportion of long-term deposits in total deposits amounted to 60-64 percent, whereas it was 55 percent in the first half of 2009.
In addition, there was observed the growth dynamics of long-term deposits by 34 percent on an annualized basis, at 12.4 percent in 2010, reaching 2 billion manat. Long-term deposits have reached 78-81 percent of total deposits during the first half.
In total amount of deposits, 33.2 percent accounted for deposits maturing in one year (compared to 32.3 percent at the beginning of the year). Interbank liabilities within six months increased by 14 percent or 238.4 million manat, and totaled two billion manat or 19.6 percent of total liabilities as of July 1.
Net growth of liabilities attracted from non-residents amounted to 245 million manat In the first half of 2010.
The ratio of liquid assets to total assets confirms the adequacy of risk management of liquidity in the banking system. By late of the first of 2010, their volume in total assets amounted to 21.3 percent, while for deposits - 56.3 percent. Analysis of liquid assets showed that they are at an acceptable level.
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