Azerbaijan, Baku, July 13 /Trend, I.Khalilova/
Azerbaijan's banking sector has a fairly stable capital, which was the result of policies conducted by the Central Bank of Azerbaijan (CBA) aimed at stimulating the capitalization of banks, a source at the Central Bank said on Wednesday.
The Action Plan for 2011-2015 on the realization of the State Program on Poverty Reduction and Sustainable Development for 2008-2015, approved by the President Ilham Aliev on June 28, 2011 states that it is planned to continue increasing banks' capitalization for the development of the banking system.
"In order to maintain the stability of the banking system of Azerbaijan, the Central Bank has consistently stimulated the capitalization of banks, said the CBA. - In addition, the process of capitalization of banks should comply with the policy of growth of each bank and each bank's capitalization policy is based on this principle."
With regards to increasing the minimum capital requirements for banks, the Central Bank conducted due assessment in this direction, however, given the urgency of the issue, the final decision has not yet been made.
"At this stage, in accordance with the recommendations of the Bazel Committee (Bazel III) on Banking Supervision, the Central Bank focuses on the structure and quality of capital," said the CBA.
Currently, the minimum capital requirement for banks is 10 million manat.
As of May 1, the capitalization of the banking sector in Azerbaijan amounted to 2.213.2 billion manat, increasing by 9.2 percent during the year.
According to statistics from the CBA, the number of banks with capital exceeding 10 million manat as of the end of April was 41. The share of this category of banks in the total capital of all banks in the country in April amounted to 98.9 percent.
The capital of two banks (with specific weight of 0.9 percent) was formed in the range from five million to 10 million manat, one bank (0.2 percent) - from 3.5 million to five million manat manat.
Official exchange rate on July 13 is 0.7865 AZN/USD.