Summary Amount of Azerbaijan’s Banking Capital Increased for 1st Quarter of 2007 by 11%

Business Materials 28 April 2007 14:50 (UTC +04:00)

Azerbaijan, Baku/ Trend , corr. I. Khalilova/ The National Bank of Azerbaijan (NBA) establishes a fact of improvement of the situation with the capitalization of banking sector of the country in the first quarter of 2007. According to NBA, to April 1, 2007, the summary capital of 25 banks operating in the country had been formed in the range between AZN 5 mln. and 10 mln.. The capital of 15 banks operating in the Country exceeds AZN 10 mln.

According to the NBA normative requirements to the aggregate capital to January 1, 2007, all the banks operating in the Country had been to formed it at a level of AZN 8.2 mln., and are to bring it up to AZN 10 mln. by July 1, 2007.

Meanwhile, three banks operating in Azerbaijan have paid the capital in the range between AZN 3.5 mln. and AZN 5 mln.. According to the results of the diagnostic verifications sanctioned by the NBA Board on February 1, these three banks have left the right to receive deposits from population, however they have not taken any measures to restore the required limit. The decision on limiting the banking license was taken after the quality of the assets of the banks had been appraised.

The aggregate amount of the capital of all 44 banks operating in the Country, increasing by 11% against the beginning of 2007(this figure had been equal to AZN 603.3 mln. to January 1, 2007), has reached AZN 669.9 mln.