FIMSA takes under control five more Azerbaijani banks (UPDATE)
Details added (first version posted on 11:58)
Baku, Azerbaijan, May 30
By Anvar Mammadov – Trend:
Azerbaijan’s Financial Market Supervisory Authority (FIMSA) has taken under control five more banks due to capital deficiency, said Chairman of FIMSA Board of Directors Rufat Aslanli.
He made the remarks at a conference titled “Economic reforms: Achieved Results and Recommendations” in Baku on May 30.
“Licenses of 11 banks were revoked after starting the process of the banking sector’s recovery. Twelve out of 26 banks managed to achieve significant capitalization. Today, under our supervision, there are five banks, capitalization programs of which should be completed by mid-2017,” said Aslanli.
According to him, as a result of capitalization, Azerbaijan’s banking sector, with the exception of the International Bank of Azerbaijan (IBA), achieved positive results.
“To date, banks generally comply with the requirements for the adequacy of capital. However, we must take into account that if banks resume active crediting and thus increase the volume of risky assets, then, according to our calculations, there will be need for additional capitalization,” FIMSA head added.
Total capital of Azerbaijan’s banking sector amounted to almost 2.76 billion manats in the 1Q17. According to FIMSA, total volume of banks’ capital increased by 44.6 percent during the period.
Total assets of the banking sector amounted to 29.98 billion manats in late March 2017 as compared to 31.44 billion manats in late 2016.
Loan portfolio of Azerbaijani banks reached 15.053 billion manats in January-March 2017, while it was 15.94 billion manats in late 2016. The volume of reserves created to pay off possible losses on loans increased by 1.96 percent during the period and amounted to 1.73 billion manats.
Thirty-two banks operate in Azerbaijan, including the two state-owned ones.
(1.7020 manats = $1 on May 30)