Azerbaijan, Baku, Aug. 11 /Trend, N.Ismayilova/
In the first half year, the loans in Azerbaijan were funded at the expense of more stable resources, the Central Bank of Azerbaijan (CBA) said in a report on financial stability.
The ratio of loans to deposits for the reported period decreased from 174 to 155 percent. The optimization of the structure of assets and liabilities by the banks and the decrease in the difference in the timing between them had an impact on the decrease in liquidity risk of the banking sector.
During the reporting period, the liquidity risks of the banking system were managed at an acceptable level. The ratio of liquid assets to total remained at 16-19 percent, exceeding the current liabilities by 56-75 percent. The ratio of monetary liquidity is two times higher than the minimum level of 30 percent and amounted to 77-110 percent.
As of the end of the half year, in the structure of liquid assets, the cash, nostro accounts and government securities accounted for 26 percent, 40 percent and 17 percent respectively. As of the beginning of the year, in excess liquidity of banks, the share of funds in bank accounts of CBA was 31 percent, as of the end of June, it was 17 percent.
In order to minimize exchange rate risks, currency composition of assets and liabilities were balanced. So, as of July 1, foreign currency assets amounted to 44 percent, liabilities - 54 percent.
In the first six months, the loan portfolio quality remained at an acceptable level, the share of overdue loans accounted for 6.3 percent of the portfolio, non-standard - 8.5 percent, including non-working - five percent.
As of July 1, the reserves established for credits amounted to 8.6 percent of the portfolio, increasing by 0.7 percent since the beginning of the year.