Azerbaijan reduces banking system concentration
Azerbaijan, Baku, Feb.17 /Trend N.Ismayilova/
The banking system's concentration dropped in Azerbaijan in 2011, the Central Bank of Azerbaijan (CBA) said on Friday.
"The share of the five largest banks in terms of the country's assets decreased from 60.7 percent to 57 percent of the total assets in the system, and from 60.9 percent to 56.5 percent of the volume of credit investments," the CBA said.
The banking sector's assets increased by 7.3 percent, reaching 14.26 billion manat. The share of loans in the banking system's assets amounted to 68 percent.
The CBA also noted the drop in the Herfindahl-Hirschman index, which is used to assess the degree of industrial monopolization.
The index shows the average concentration on the banking system.
There are 44 banks operating in Azerbaijan.
Official exchange rate on Feb.17 is 0.7863 AZN/USD