Baku, Azerbaijan, Aug. 4
By Azad Hasanli – Trend:
As of July 1, 2017, capitalization of Azerbaijan’s banking sector reached 2.71 billion manats, which is 42.6 percent more than in the same period of 2016, says the review of the country’s Financial Market Supervisory Authority (FIMSA) issued Aug. 4.
According to the report, assets of Azerbaijani banks have decreased by 4.46 percent since early 2017 – to almost 30.04 billion manats.
The main reason in assets reduction can be associated with the decline in crediting volumes, which, in turn, was caused by the transfer of the subsequent installment of problematic assets of International Bank of Azerbaijan (IBA) to the Aqrarkredit non-bank credit organization.
Consequently, banks decreased the volume of crediting from 15.9 billion to 13.46 billion manats in six months of 2017. Meanwhile, Azerbaijani banks significantly increased investments in securities by 7.5 times – up to 3.1 billion manats in 1H17.
Liabilities of banks amounted to 27.3 billion manats in the period (decrease by 7.5 percent since early 2017), and deposits of clients totaled 16.7 billion manats (growth by 1.8 percent) in the reported period.
Thirty-one banks (including two state-owned) operate in Azerbaijan.