Azerbaijan, Baku / Trend corr I. Khalilova / International organizations forecast a growth in the banking sector in Azerbaijan during the next three years. The representative of Azerbaijan of ACDI/VOCA, Mohammad Juneyt, reported on 18 June at the Azerbaijani Rating Conference to 'Raise of Transparency and Improvement of Access to Capital' held in Baku that assets of the banking sector in Azerbaijan during the next three years will amount to $10bln.
According to Juneyt, the average annual growth of the banking sector is forecast at the level of 20-30%.
According to the head of the Bank Control Department of the National Bank of Azerbaijan, Adyshirin Gasymov, in 2006 the increase of assets of Azerbaijani banks made up 68% with their profitability at 1.7%. The capital of the banks increased by 61% in 2006 with rise in profitability of 12.7%.
Gasymov said that there were disadvantages in the banking system of Azerbaijan. So, the ratio of assets to GDP is 21%, this is less than in neighbouring countries. At the same time he indicated the high level of the share of state banks in the banking sector of the country (54%). The ratio of deposits to GDP comprises of 12%, which is also considered to be a low index. Gasymov considers the banking services in Azerbaijan to be expensive, what causes expensiveness of credits is affecting access to capital.
From 1 July the minimum capital of banks in Azerbaijan should amount to AZN 10mln. "I believe that will lead to consolidation of bank capital," he said.
There are 44 banks with two of them state and 21involving foreign capital functioning in Azerbaijan.