Standard & Poor's: Stable situation in Azerbaijani banking sector

Business Materials 15 February 2012 15:58 (UTC +04:00)

Azerbaijan, Baku, Feb. 15 / Trend A. Akhundov /

The situation in the Azerbaijani banking sector is stable, Standard & Poor's analyst Viktor Nikolsky told Trend today.

However, he said there are high risks associated with the system.

"According to the banking industry country risk assessment (BICRA), which assesses economic risks, particularly banking industry risks, Azerbaijan is in the ninth group out of 1`\0," he said.

He said Azerbaijan's banking market is small, concentrated and competitive.

The International Bank of Azerbaijan dominates the market, which affects competition. The banking sector does not have liquidity problems, he said.

"It would seem that the situation is quite stable, but if we look at bank loan portfolios, we see that there are a lot of risks."

Azerbaijan's sovereign rating has recently been raised from "BB+" to "BBB-."