Azerbaijan, Baku, Nov. 17 / Trend N. Ismayilova /
Fitch Ratings expects that loan growth will slow in 2012 due to the weaker global outlook, policy moves and base effects, as already evident in Turkey.
The report on Banking System Datawatch: Credit Slowdown Expected, But Most Growth Markets Remain Sound published on Thursday said.
"Most banking systems continue to report sound numbers, with strong capital, low NPLs, moderate post-crisis growth and mainly deposit funding," the report said.
According to the information, the former Soviet Union banks' profitability and asset quality (except Belarus) have stabilized as high commodity prices have supported economies.
However, the Kazakh and Ukrainian systems still suffer from high problem loans, negative profitability, potentially weak capitalization (due to accrued interest in Kazakhstan and low coverage of restructured loans in Ukraine) and (in Kazakhstan) tight margins. The performance of Russian banks, like the broader economy, is likely to remain highly cyclical and dependent on the oil price.