Central bank: Enough liquid assets in Azerbaijani banking sector to cover half of public deposits

Central bank: Enough liquid assets in Azerbaijani banking sector to cover half of public deposits

Azerbaijan, Baku, Dec. 27 / Trend, I. Khalilova /

The total capital of the Azerbaijani banking sector increased 30% between January and November, the Azerbaijani Central Bank's statement on the main directions of monetary and financial stability for 2013 said today.

"The banks' capital position is estimated to be at a satisfactory level, as the capital adequacy index was at 15.7%, exceeding the minimum requirement of the Central Bank (12%)," a statement said.

The Central Bank increased the minimum requirement for capitalization by five times - up to 50 million Manat from January 1st, 2014 to improve the financial stability of the banking system and intensify financial intermediation. Today, banks covering 89% of the assets of the country's entire banking sector, meet this requirement.

The returns on equity (ROE) hit 9% within 11 months, and the returns on bank assets (ROA) exceeded 1%.

During the reporting period, bank assets rose by 20.6% and credit investments - by 20.9%. The banks increased lending to industry and production by 50%, and to agriculture and processing - by 16%. Some 66.4 million Manat were allocated through the Azerbaijan Mortgage Fund to finance housing purchases. More than 1,800 individuals received mortgage loans.

The volume of long-term loans increased 23%. Credit investments from banks outside of the capitol increased by 19.6%, and by 28% from the non-bank credit institutions.

In general, the central bank estimates the liquidity of the banking sector to be at a stable and reasonable level. The share of liquid assets totaled 12.8% of total volume of assets.

"This is enough to cover half of the population's deposits", the central bank said.

The process of the banking sector's integration into the global financial system and the acquisition of funds from foreign sources continued this year. Today, the share of external debt in bank resources is 15.5%.

The central bank thinks that public confidence in the country's banking sector strengthened, as evidenced by the growth of the savings by 15.6 % to 4.8 billion Manat. The amount of deposits with a maturity of over one year increased 17.4%. Deposits in local currency increased by 23% and significantly exceeded the growth rate of foreign currency which was 6.5%, while the population's deposits in the regions increased by 16%.

"Interest rates also declined during 2012," a statement said. "The average interest rate on loans and deposits decreased to two percentage points."

The Central Bank also stressed the expansion of regional coverage of the financial sector. Some 26 new bank branches and 14 offices have been opened within 11 months. At present, some 654 branches and 162 offices of banks, half of which are in the regions, are operating in the country. Moreover, around 114 branches of 132 non-banking credit organizations are operating in the country.

Some 43 banks are operating in Azerbaijan.

The official exchange rate is 0.7850 AZN/USD on Dec. 27.

Subscribe to Trend in Google News! Subscribe
Kazakh gas producing company opens tender to buy steel pipes
Kazakh gas producing company opens tender to buy steel pipes
Kazakhstan’s oil and gas company opens tender for equipment repair
Kazakhstan’s oil and gas company opens tender for equipment repair
Baku State University opens tender for security services
Baku State University opens tender for security services
Loading Bars
Latest
South Africa reports nearly 20,000 COVID-19 cases, an Omicron-wave record
Iran reveals COVID-19 data for December 9
Iran's Bahar Azadi gold coin price rising
Trade turnover between Uzbekistan and Azerbaijan increases
Azerbaijan becomes main cement exporter to Georgia
Azerbaijani National Agency for Mine Clearance of Territories informs about two people killed in mine explosion near Shusha
Biggest cement exporters to Georgia revealed
IGB to have two audits after being commissioned
Azerbaijan’s 9M2021 turnover of mutual tourism services decrease
Azerbaijan discloses balance of payments in 9M2021
Time of allocating last EIB loan tranche to IGB announced
Azerbaijani minister talks number of regions to be covered by STEAM educational project
Turkmenistan supports measure by int'l community to fight COVID-19 consequences – minister
EIB allocates third tranche of loan for IGB
Banks of Azerbaijan to optimize their information security in 2022
School to be restored after residents return to Aghali village of Azerbaijan's Zangilan – minister
Uzbekistan among countries with cheapest electricity
Azerbaijan completes design of school № 1 in Shusha city – minister
Azerbaijan's Unibank to expand online services
Azerbaijan notes increase in aluminum export in 10M2021
Azerbaijan's Bank Respublika introducing modern authentication-based open banking
Two dead as result of mine explosion in Dashalti village of Shusha
Iran records decrease in production of several mining products
Azerbaijan’s 10M2021 oil exports to France revealed
Azerbaijan considers providing media entities with preferential loans
Azerbaijan's AzeriCard to launch expanded form of contactless payment system
Iran’s Shahid Tondgooyan Petrochemical Company to boost production
EBRD allocates loan to Azerbaijani engineering-manufacturing company
Proposal made to apply tax incentives to media entities in Azerbaijan (PHOTO)
Turkey reveals passenger traffic at new Istanbul airport over 11M2021
Azerbaijan sees growth in cotton products export volume for 10M2021
Four factors to shape next steps of OPEC+ in 2022
RBI pegs GDP growth at 9.5%, inflation at 5.3% for 2021-22
Oil market lagging behind that of natural gas in terms of balances
Azerbaijan identifies remains found in Caspian Sea
Azerbaijan notably increases export volume of plastic products for 10M2021
Dangerous to fully trust accuracy of minefield maps provided by Armenia - Azerbaijani president's special representative
Azerbaijan plans to rebuild ‘Imarat’ stadium in Aghdam - special rep of president
India's Ola Electric raises $200 mn funding, valuation touches $3 bn
SOCAR AQS completes drilling of another well at Gunashli field
Iran’s IAC shares data on activities of airports in Ardabil Province
Turkmenistan commissions new gas field
Bitcoin demonstrates sustainability as financial resource - FARI Solutions
Georgia releases COVID-19 data for December 9
Georgia’s sheep exports down
Indian RBI sees GDP growth at 9.5% but warns of Omicron risk
GECF intends to create an Electronic Trading Platform
Byju's buys Austrian math-learning co GeoGebra
Azerbaijani oil prices increase change
Azerbaijan to be represented by Deputy Foreign Minister Khalaf Khalafov at 3+3 format meeting
General Bipin Rawat played key role in cementing India-US defence ties: US
Bangladesh: Shringla calls on Sheikh Hasina, discusses forthcoming visit of President Kovind
Kazakh gas producing company opens tender to buy steel pipes
Kazakhstan begins construction of new ferroalloy plant in Ekibastuz
Cargo movements in Iran's Fereidoonkenar port down
Iran sees increase in exports via customs of West Azerbaijan Province
SOCAR among main suppliers of motor gasoline produced by ORLEN to Ukraine
First meeting of cooperation platform in 3+3 format to be held in Moscow
Azerbaijan plans to begin formation of legal framework for open banking in 2022 (PHOTO)
Kazakhstan’s oil and gas company opens tender for equipment repair
Azerbaijani, French ambassadors discuss results of Sochi meeting in Russia
U.S.-Israeli firm Tipalti raises $270 mln at more than $8 bln valuation
Uzbekistan shares domestic COVID-19 data for December 8
Georgia’s wine export volume reaches historical maximum
Iranian currency rates for Dec. 9
Armenian provocation near border results in death of Azerbaijani soldier
Iran reaches new record in daily gas transportation
Oil stays on the rebound as Omicron fears ease
Russia’s Astrakhan developing transportation of goods along North-South int’l transport corridor - governor
6.0-magnitude quake strikes Japan's Kagoshima Prefecture
Japan's COVID-19 cases defy Asia rebound, yet fears remain for winter wave
Steps being taken to build new bridge over Astarachay between Azerbaijan and Iran – ambassador
Kazakh economic growth accelerates to 3.8%
U.S. envoy to return to Vienna over weekend for Iran talks
UK, Canada join diplomatic boycott of Beijing Winter Games
Russia plans to deliver another batch of S-400 systems to Turkey - Kremlin spokesman
Burkina Faso president fires PM amid security crisis
Pres. Raisi: Iran-Turkey cooperation to enter new phase
Seven U.N. peacekeepers killed in central Mali explosion
Bayern Munich 3-0 Barcelona: Xavi's side crash out of Champions League
Erdogan praises new economy model, calls for trust in policies
Olaf Scholz elected new German chancellor
Georgian gov't allows Covid-19 booster five months after last shot
Turkey’s COVID-19 numbers decrease despite winter worries
Georgia shares data on most exported goods to Azerbaijan
Iran RIPI among 25 leading patent holders in oil, gas nanotech
Johnson imposes COVID-19 'Plan B' in England to contain Omicron
Azerbaijan-Iran to take steps to increase trade turnover – Iranian ambassador
Pfizer, BioNTech vaccine neutralises Omicron with three shots
Azerbaijan proposes new version of budget rule – minister
Azerbaijan working to prepare Budget Code
Iran is ready to start co-op with Azerbaijan, Russia in synchronization of power grids - minister
Azerbaijan appoints new president of Wrestling Federation
EIB, EBRD assess financing opportunities for Georgian business
Central Bank of Azerbaijan puts into circulation new 20 qepik coin
Turkmenistan launches production of Shir deri branded shoes
Uzbek Statistics Committee publishes leading regions in terms of food production
Georgia seeks funding for underground gas reservoir construction
Uzbek Commodity Exchange announces its weekly quotes of commodities for export
Tactical-Special Exercises held in Azerbaijani Nakhchivan (PHOTO/VIDEO)
All news