Baku, Azerbaijan, July 26
By Azad Hasanli – Trend:
Capitalization of the banking sector in Azerbaijan amounted to 3.9 billion manats at the end of June 2018, having increased by 5.25 percent from the beginning of the year, a report of the Financial Market Supervisory Authority says.
The capitalization decreased slightly by 0.64 percent in June compared to the previous month, the report reads.
The capitalization increased by 44.4 percent over a year (at the end of June 2018 compared to the same period last year).
The country's banks have been in a difficult situation over the past two or three years: the outflow of deposits, expansion of dollarization, reduction of lending and growth of losses. The capitalization of banks fell sharply against the background of these events, which eventually led to the closure of about 15 of 45 banks. However, the situation began to improve gradually in 2017, banks began to restore their performance indicators, including capitalization.
As a result, while the capitalization amounted to 1,908.8 million manats at the end of 2016, this figure already reached 2,760.2 million manats at the end of March 2017.
Some 30 banks are functioning currently in Azerbaijan.
(1.7 AZN = 1 USD on July 26)
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