Capitalization of Azerbaijani banking sector increases by 13 per cent

Azerbaijan, Baku, March 14 / Trend A.Akhundov /

Capitalization of the banking sector in Azerbaijan increased by 1.2 percent in Jan, 2012, and by 12.67 percent compared to Jan, 2011 to exceed 2.456 million manat as of Feb 1, 2012, the statistical report of the Central Bank of Azerbaijan (CBA) said on Wednesday.

According to the CBA, number of banks with capital exceeding 10 million manat amounted to 42 as of Jan, 2012, and remaining unchanged compared with the previous month and January, 2011. Share of this category of banks in the total volume of capital of all banks was 99.5 per cent in Jan, 2012 compared to 99.4 per cent in Dec, 2011 and 98.9 per cent as of Jan, 2011.

At present two banks doesn't meet the CBA requirement on capitalization (the minimum size of the capital should be 10 million manat). The first bank (with share of 0.3 per cent) has capital ranging from 5 million to 10 million manat, and the second (0.2 per cent) - from 3.5 million to 5 million manat.

The official exchange rate is 0.7864 AZN to $1 on March 14.