Baku, Azerbaijan, Dec. 13
By Emin Aliyev - Trend:
In January-October 2013 the capitalisation of the banking sector of Azerbaijan increased by 34.4 per cent to 3.23 billion manat as of Nov. 1 compared to the same period in 2012.
According to the CBA, the number of banks with capital exceeding 10 million manat reached 41 in the reporting period, while in January-October 2012 this number was 40. The specific weight of banks belonging to this category in the total capital of the country's banks amounted to 99.7 per cent following the reporting period.
There have been no banks with capital formed within the limits of five million manat to 10 million manat since early 2013, while in October 2012 there was one bank in the country's banking market.
There were two banks with capital from 3.5 million manat to five million manat in the reporting period.
The specific weight of banks of this category in the total capital of all banks in the country amounted to 0.3 per cent following the reporting period.
Azerbaijani banks that are unable to meet the new capital requirements of the Azerbaijani Central Bank (CBA) should submit their individual programmes to increase their capitalisation until Jan.15, 2014.
Initially, the new CBA requirement for the minimum total capital of 50 million manat was due to come into force on Jan.1, 2014, but later on Nov.15, 2013, the regulator postponed the introduction of this standard for a year.
Some 95 per cent of the banking sector has already met the requirement for bringing the total capital to 50 million manat, or have time to carry it out until the end of 2013, CBA Chairman Elman Rustamov said earlier.
The Central Bank has no intentions of eliminating such commercial banks from the market, or create difficulties for these banks, Rustamov said.
"Nevertheless, it doesn't mean the banks can relax. They must work and develop," Rustamov said.
Currently, around eight banks have capital of over 100 million manat. The capital adequacy indicator of Azerbaijan's banking sector is 17 per cent which exceeds the minimum level set in the world sevenfold, CBA chairman said.
The official exchange rate is 0.7844 AZN/USD on Dec. 13.
Translated by NH
Edited by SM