Volume of external debt of Azerbaijan's banking system hits 17 percent of total obligations in 2010
Azerbaijan, Baku, March 2 / Trend N. Ismayilova /
The deposits of legal and physical entities preserved the role of the main source in forming the resource base in 2010, a report on financial stability of the Central Bank of Azerbaijan (CBA) said.
The total deposit base of banks increased by 794.6 million manat, reaching 5.45 billion manat compared to early 2010. The share of deposits in total liabilities amounted to 46.6 percent, and in the total resource base, 38.6 percent.
Last year there was volatility in the dynamics of legal entities' deposits. Their volume increased by 799.7 million manat and hit 2.4 billion manat. Thus, banks prefer internal resources to increase financial flexibility and reduce liquidity risk.
As of January 1, the share of deposits in bank liabilities hit 27.2 percent compared to 24.2 percent as of early 2010. The average monthly growth of people's deposits amounted to 2.2 percent, but in the second half there was significant increase.
Improving the structure of the deposit portfolio by maturity shows the increased confidence in the banking system. The dynamics of growth of long-term deposits amounted to 35.3 percent on an annualized basis, and funds on demand - 10,4 percent.
Roughly 34.6 percent in total deposits fell to the deposits maturing in one year (compared to 32.3 percent as of early 2011). Inter-bank liabilities in 2010 increased by 24.5 percent, or 417.4 million manat. They hit 2,1 billion manat as of Jan. 1.
In 2010, the net increase in liabilities raised from non-residents increased by 111.4 million manat, or 6.4 percent. The external debt of the banking system reached 1.85 billion manat. It hits 16.6 percent of total liabilities.
The ratio of liquid assets to the total assets confirms the adequacy of controlling liquid risks in the banking system. At the end of the year their volume is one-fifth in total assets, and deposits about 55-62 percent.