Azerbaijan, Baku / Trend corr I. Khalilova / The National Bank of Azerbaijan (NBA) considers the capitalization of the banking sector of the country insufficient. The deputy president of the bank, Rufat Aslanly, reported at the general meeting of the Azerbaijan Banks Association on 17 July that intensive work on assessment of the level of capitalization of banks in compliance with normative requirements of the NBA for 1 July (minimum amount of authorized capital should comprise at least AZN 10mln) was in progress.
"For the Azerbaijani banking sector that is not sufficient capital yet. In a dynamically developing economy 10mln capital is not considered sufficient. The NBA has intentions to define a new strategy in connection to this," Aslanly said. This need is related to the increased risks in the banking system that is connected with high rise in banking indexes.
As at 1 June, the capital of 23 banks exceeded AZN 10mln. Seventeen banks had from AZN 5mln to AZN 10mln.
During May the structure of capitalization of the banks experienced some changes. Five banks entered a group with authorized capital of over AZN 10mln. Three banks had a retained capital of AZN 3.5mln - AZN 5mln.