Most of liabilities in Azerbaijani banking sector account for deposits

Finance Materials 26 June 2020 15:55 (UTC +04:00)
Most of liabilities in Azerbaijani banking sector account for deposits

BAKU, Azerbaijan, June 26

By Eldar Janashvili - Trend:

The total liabilities of Azerbaijan's banking sector reduced by 5.1 percent from January through May 2020 compared to the same period of 2019, Trend reports on June 26 referring to the Central Bank of Azerbaijan’s report.

In accordance with the report, total liabilities decreased by 1.4 billion manat ($823,529), to 26.7 billion manat ($15.7 billion).

A big part (80.1 percent) in the structure of liabilities accounts for deposits (including deposits to the financial institutions), the volume of which decreased by 5.2 percent up to 21.4 billion manat ($ 12.6 billion).

At the same time, the biggest part of 58 percent accounted for deposits of legal entities in the amount of 12.4 billion manat or $7.3 billion (a decrease by 3.1 percent), of which 10.4 billion manat or $6.1 billion (83.9 percent) - demand deposits.

The deposits of individuals decreased by 11.2 percent up to 7.5 billion manat ($4.4 billion), of which about 62 percent accounted for term deposits in the amount of 4.7 billion manat ($2.8 billion). The deposits of financial institutions amounted to 1.4 billion manat ($823,529) or 6.7 percent of all deposits.

The bank liabilities to the Central Bank of Azerbaijan amounted to 400 million manat ($235 million) which is by 212 million manat ($124 million) more than in 2019. Loro accounts totaled 230 million manat ($135 million).

The volume of loans of banks and financial institutions amounted to 2.06 billion manat ($1.2 billion), which is almost unchanged from the beginning of the year. The issued securities of the country's banks totaled 1.7 billion manat ($1 billion) or 6.6 percent of the total liabilities. Other liabilities amounted to 870 million manat ($511 million).

In accordance with the report, the total capital of banks in 2020 decreased by 0.4 percent and amounted to 4.6 billion manat ($2.7 billion), while the banks' equity amounted to 4.2 billion manat that’s $2.5 billion (a decrease of 0.5 percent) while the bank’s capital reserves - 300 million manat ($176 million).

(1 USD = 1.7 AZN on June 26)


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