Baku, Azerbaijan, Dec. 11
By Azad Hasanli – Trend:
In January-October 2017, Azerbaijani banks with fully local capital increased lending to 5.8 billion manats, up 4.4 percent compared to the same period last year, said a report of the Central Bank (CBA).
The share of local banks in lending for the same period grew from 35.2 to 47.85 percent, according to the report.
The aggregate volume of the loan portfolio of foreign banks amounted to 3.77 billion manats (11.2 percent reduction for the year), including those with 100 percent foreign capital (1.09 billion manats, a 15 percent reduction for the year).
In general, the loan portfolio of Azerbaijani banks totaled 12.15 billion manats in October, decreasing by 23.18 percent compared to January-October 2016.
At the same time, Azerbaijani state banks' share in lending shrank significantly. This is mainly due to the recovery and “clean-up” of the loan portfolio of the International Bank of Azerbaijan.
During the period, the share of state banks in lending was 17.6 percent (almost 2.15 billion manats) and the share of private banks amounted to 78.9 percent (9.59 billion manats). In October 2016, the share of state banks was 34.9 percent (5.53 billion manats) and the share of private banks amounted to 62.1 percent (9.8 billion manats), respectively.
The reduction in lending also affected non-bank credit organizations (NBCOs), according to the report. In January-October 2017, the loan portfolio of NBCOs amounted to 420.2 million manats (an 11.2 percent decrease for the year). At the same time, against the background of the general reduction in lending, the share of NBCOs grew from 3 to 3.5 percent.
There are 31 banks, including 15 with fully local capital, in Azerbaijan.
(1.7 manats = 1 USD on Dec. 11)