Opportunities of Azerbaijani banks for lending and investment expands to 2017

Azerbaijan, Baku, October 31 /Trend D. Nasibova/

One of the major priorities of socio-economic development in Azerbaijan for 2013-2016 is the development of a stable banking system and increasing the level of confidence on the part of economic agents.

This has been stated in the draft of the state budget of Azerbaijan for 2013 and the next three years, submitted to the Parliament.

'It is planned to strengthen the role of the banking system by ensuring the diversification of the economy through the development of the non-oil sector, acceleration of the development of Azerbaijan's regions and reducing poverty and increasing entrepreneurship in order to achieve these goals', the draft said.

Moreover, the banking sector is expected to increase investment and credit opportunities which will create a legal competition in the banking market. More attention will also be paid to the quality of the bank's assets and risk prevention management.

As of September 1, 2012, banks issued loans worth 11.157.8 billion manat, which is 8.8 per cent compared to the beginning of the year and by 18.7 per cent compared to the same period in 2011.

Loans and borrowings worth 731.7 million (6.56 per cent) of the total portfolio were overdue compared to 633.8 million manat as of January 2012, and to 592.5 million manat - September 1, 2011.

Due loans increased by 15.4 per cent for eight months of the year past, while by 23.5 per cent - on an annual basis.

Loans issued to the population in the regions of Azerbaijan amounted to 1.429.67 billion manat or 12.8 per cent of the total loan portfolio at early September.

Most of the loans were granted to households in Azerbaijan. Loans totalling 3.942.2 billion manat, or 35.3 per cent were allocated to households in January-August 2012, the CBA said.

It is also planned to develop payment systems in subsequent years, including electronic payment systems.

A series of activities in order to develop the banking system of the country in priority areas, which include the completion of the improvement and management of enterprise systems, increase access including in the regions, to banking services, the capitalisation of the banking system and the continuation of the consolidation process and to encourage the creation of new institutions and mechanisms for access to financial resources is also planned.

According to the CBA board's decision dated July 25, the minimum total capital of existing banks and authorised capital of newly established banks increased from the current 10 million manat ($12.7 million) to 50 million manat ($63.7 million). The new requirement for the capitalisation of the existing banks will come into force from January 1, 2014.

The capitalisation of the banking sector in Azerbaijan increased by 2.5 per cent and by 9.7 per cent compared to the beginning of the year, and decreased by 0.2 per cent compared to August 2011, amounting to 2.324.6 billion manat on September 1.

Azerbaijani banks forced to raise their capital to the new regulatory level have already started negotiations on the consolidation.

The country's banking system already has successful experience of bank consolidation with EBRD assistance. UniBank was established due to the unification of two commercial banks MBank and Promtexbank in 2002 and EBRD getting a 15 per cent share. Unification of the Bank of Baku and IlkBank took place in 2005.

Official exchange rate on Oct 31 is 0.7849 AZN/USD

Economy Ministry talks main reasons for surge in Georgian Railway's expenditures
Economy Ministry talks main reasons for surge in Georgian Railway's expenditures
Istanbul International Airport declared to be busiest airport in 2020
Istanbul International Airport declared to be busiest airport in 2020
Azerbaijani transport agency's chief sums up activities in 2020
Azerbaijani transport agency's chief sums up activities in 2020
Loading Bars
US introduces sanctions against companies and ships due to trading Venezuelan oil
Shopping malls and fairs staff to be Covid-tested regularly
East Kazakhstan plans to vaccinate 20% of its population
Azerbaijan commemorates 31st anniversary of January 20 tragedy
Azerbaijan discloses foreign trade turnover volume
Investors pump $125 million into EV charging startup Volta
President Ilham Aliyev makes Facebook post on anniversary of 20 January tragedy (PHOTO)
Turkey registers 6 818 new COVID-19 cases
Georgia starts developing US-Georgia economic cooperation plan
Iranian Energy Exchange announces products to be on sale on January 20
International Bank of Azerbaijan's net profit declines in 2020
Kazakhstan increases imports from Sweden year-on-year
We propose to declare Shusha cultural capital of Turkic world in 2022 - SecGen of Turkic Council
Liberation of Azerbaijani lands is not just victory for Azerbaijan, it is great victory for entire Turkic world - Turkic Council SecGen
Moral and political support in such difficult time means a lot for our people - President Aliyev
Brussels targets vaccinating at least 70% of EU adults by summer
Shusha will see many international events - President Ilham Aliyev
I think that we will all see revived cities in near future - President of Azerbaijan
Turkic Council is organization that supported us most during war - President of Azerbaijan
We must protect our land and rely only on our own strength - President of Azerbaijan
20th century has not seen such barbarism, vandalism and destruction, deliberate destruction of cities, villages - President Aliyev
Foreign journalists called Aghdam “Hiroshima of Caucasus” - President Aliyev
Azerbaijani Finance Ministry’s securities in great demand at Baku Stock Exchange
Pomegranate orchards to be planted in Azerbaijan's liberated lands
Vatican responds to appeal of CMO chairman on Nagorno-Karabakh
Soviet leadership tried to break will of Azerbaijani people by sending troops to Baku in 1990 - MP (VIDEO)
Azerbaijan, Afghanistan, Turkmenistan sign roadmap to intensify co-op in several spheres
Azerbaijan lists documents needed for visa-free entry for Turkish citizens
Azerbaijan shows footage from Chopurlu village of Kalbajar district (PHOTO/VIDEO)
Russia sends additional equipment to Azerbaijan for demining liberated lands (PHOTO/VIDEO)
Azerbaijan to assess possibilities for dev't of agrarian sector in its liberated lands
Azerbaijan, UAE to ink final agreements on solar energy projects
Azerbaijan’s Baku executive power opens tender to buy spare parts for trucks
Georgia to approve national vaccination plan
MasterCard company seeks to facilitate use of modern payment technologies in Georgia
Uzbekistan’s fuel export to Tajikistan increases in 2020
Bahar Azadi gold coin price rebounds in Iran
Azerbaijan develops program for recycling old cars
TOP-5 trade partners of Azerbaijan in 2020
Azerbaijani ministry highlights work to expand countrywide Internet traffic
Economy Ministry talks main reasons for surge in Georgian Railway's expenditures
State share of Uzbekistan’s enterprise on production of asphalt concrete mixtures sold via electronic auction
Kazakhstan multifold decreases export of petroleum oils to Italy amid COVID-19
Meeting with German experts held in Ministry of Healthcare and Medical Industry of Turkmenistan
International Bank of Azerbaijan unveils 2020 total liabilities
Azerbaijan presents innovative solution in field of entrepreneurship
Israeli pensioners party after COVID-19 booster shots
Turkmenistan’s expanded clay plant names production volume for 2020
Azerbaijani ministry discusses damage to Kalbajar's flora caused by Armenia (PHOTO/VIDEO)
Azerbaijan talks COVID-19 vaccination document for traveling abroad
Istanbul International Airport declared to be busiest airport in 2020
New solar panel station launched in Iran's Yazd Province
IEA forecasts Azerbaijan’s 2021 oil output
HSBC to axe 82 branches in UK, cut services in others
Iran progresses with gas production, distribution
French media reported second Karabakh War only from Armenia's viewpoint - famous photojournalist (PHOTO)
Iran's budget plan aims to solve problems of low-income households
Kazakhstan's 2020 coal extraction volume exceeds plan
Netherlands slightly increase petroleum oil exports volume from Kazakhstan
Uzbekistan’s coal production significantly increases in 2020
Gold price down in Azerbaijan
Armenia's revanchist statements against Azerbaijan threaten primarily its people - Ukrainian expert
Azerbaijan discloses timeframe for commissioning Victory Road to Shusha city (PHOTO)
Georgia reveals revenues from tourism in 2020
Uzbekistan considers measures for expanding industrial products export
Georgian Adjara boosts tangerine exports as subsidy program continues
IEA talks Kazakhstan's OPEC+ deal compliance says oil production remains unchanged
Azerbaijan confirms 949 more COVID-19 recoveries
Azerbaijan's contribution allows reducing greenhouse gas emissions - minister
Azerbaijan ranks with top CIS countries having least public, foreign debts in 2020
Share of Chinese goods in Azerbaijan's total imports grows markedly
Azerbaijan bans import of plastic bags, disposable tableware
Iran reveals COVID-19 data for January 19
Uzbekistan's MFA talks co-op plans with Turkmenistan for 2021
Trade remains main target of Georgian commercial banks for financing
Kazakhstan expands list of activities for several special economic zones
Azerbaijani transport agency's chief sums up activities in 2020
Director of Azerbaijani IT company talks partnership with Slack company
Baku Higher Oil School to host webinar on ‘Natural Resources of Karabakh’
IEA assesses Azerbaijan’s compliance with OPEC+ deal
Azerbaijan ready for co-operation with Iranian companies
Azerbaijan expanding railway co-op with Iran
New copper and gold field discovered in Azerbaijan
Almost 90% see market bubbles in Deutsche Bank investor survey
Uzbek MFA names latest data of trade turnover with Turkmenistan
Boeing 737 MAX to get EU flight clearance next week
How much Azerbaijan's population spend on automobile fuel in 2020?
President Aliyev receives Secretary-General of Cooperation Council of Turkic-Speaking States in video format (PHOTO)
Kazakhstan reports annual increase in production of gold, zinc ore
Uzbek-Korean JV extends tender for purchase of hydraulic ejector
Azerbaijani president expresses condolences to Indonesian counterpart
Turkmen company starts export of environmentally friendly building materials
Kazakhstan’s freight transportation operator opens tender to buy fuel
Azerbaijan's Economy Ministry unveils volume of sold products in industrial parks
Iran's trade turnover with India shrinks
Charter, structure of Azerbaijan's Karabakh Revival Fund approved - decree
Azerbaijani company talks restoration of water supply sources to Shusha (Exclusive)
Chaos as snow hits Japanese highway, 134 cars in crashes
UK health secretary Hancock says self-isolating until Sunday
Uzbekistan’s Central Bank reveals balance payments deficit for 2020
All news