Azerbaijani central bank to raise issue of improving banks' capital quality in 2012
Azerbaijan, Baku, Oct. 22 / Trend N. Ismayilova /
The Azerbaijani Central Bank (CBA) plans to raise the issue of improving the quality of capital to the country's banking sector in 2012, CBA director general Rashad Orujov told media on Saturday.
"We are discussing the improvement of quality of the minimum requirement of banks' capital, rather than increasing it. "The changes in this direction are possible to be made in 2012."
He said that it is necessary to establish a stabilization fund in accordance with the Basel 2standards.
"These changes can be applied in the banking sector to improve the capital adequacy," he said. "According to the standards of the Basel Committee, the stabilization fund hits about 1.25 percent of the banks' assets. However, the central bank has not made a final decision. This figure will be discussed."
As of the first six months, the adequacy of the joint capital of the Azerbaijani banking sector hit 16.8 percent compared to the minimum norm of 12 percent, capital of the first level - 13.7 percent compared to the norm of 6 percent.
The banks' total capital increased by 4.5 percent or 85.6 million manat. As of July 1, it hit 1.98 billion manat. The growth was 10.2 percent per year.
The capital of the first level increased by 10.1 percent for the period and by 11.5 percent per year.
The shareholders' funds in the country's banks reached 1.45 billion manat in January-June, increasing by 6.6 percent. The share capital increased by 12 percent, or 157.5 million manat compared to last year. The share capital in total capital increased from 71.7 percent to 73.1 percent compared to early 2011.
About 44 banks operate in Azerbaijan.
The official exchange rate is 0.7869 manat to $1.