Azerbaijan, Baku, Sept.18 /Trend A.Tagiyeva/
Interest of Turkish banks towards Azerbaijan's bank market is increasing due to the rapid rate of economic growth in the country, the general director of Yapi Kredit bank, Joshgun Bulak, told Trend on Tuesday.
"We were the only bank with a hundred per cent Turkish capital in the country when Yapi Kredit opened its branch in Azerbaijan. Today, a number of banks with Turkish capital are also operating in Azerbaijani market", he said.
He said the Azerbaijani bank sector happens to be safe and stable which attracts foreign banks as well as Turkish ones.
Turkish Iş Bankası previously sent an inquiry to the Central Bank of Azerbaijan regarding the establishment of a branch in the country. The bank appealed to the establishment on the management and control of Turkish banks with the same purpose.
Bulak said that regarding the issue of increasing the minimal requirements to capitalisation of acting banks to 50 million manats by January 2014 by Central Bank of Azerbaijan, Yapi Kredit's authorised capital currently exceeds that to 78 million manats, so the bank doesn't face problems regarding that fulfilment.
He added the bank is planning to broaden its branch network in Azerbaijan to 40 during the next few years.
"The number of branches planned is 14 and possibly 15 by the end of the year. Currently 12 are operating with two in Ganja and Sumgayit," Bulak said.
He also noted the bank is currently cooperating with Azerbaijani banks, but has no plans on the development of housing finance.
"Long-lasting resources are required for mortgage lending as the loans for house purchase are allocated for the period of eight to10 years maximum. We don't give loans for such a long period of time, that's why Yapi Kredit Azerbaijan is not so active in the mortgage lending market," Bulak said.
Yapi Kredi Bank Azerbaijan was established in 1998 and is the branch of Turkish Yapi Kredi Bankasi. The Yapi Kredi Bankasi shares are transmitted to Turkish Kos Group and UniCredit Company (current beneficiary of the International Bank of Moscow and leader among international bank groups on the Central and Eastern Europe markets) on a parity base.
Official rate for September 18 amounts to 0. 7853 AZN/USD.