Major tendencies in different segments of monetary-credit system in the first quarter of 2006
Money mass Рњ2 grow
The banks of Azerbaijan increased crediting in economy;
Deposit base of the Azerbaijani banks grew;
Trading sessions on placement of T-bills were held in the stock market. The NBA continued the placement of short-term notes in the Baku Stock Exchange.
Currency market and rate of AZM
In June 2006 the International Bank of Azerbaijan became a leader at the Baku Interbank Currency Exchange. The IBA was a leader at the exchange currency market of Azerbaijan in 2003 (December, November, September, July, August) and 2004 (except October), in 2005 excluding December, and in January to March 2006 (except April and May).
Amount of currency trading sessions at BBVB in June 2006
|
Amount, in mln USD |
Rise in June 2006 | |
|
Total, (BEST) |
$135.64 |
2.32 times |
Along with the IBA, the top five included Bank Standard (5.92%), Bank of Baku (4.41%), Texnikabank (3.69%) and Kapitalbank (3.69%).
As a result of May Bank of Baku (30.69%), Texnikabank (13.37%), UniBank (10.91%), Rabitabank (5.99%) and Azerigasbank (4.76%).
|
Bank |
Share in total, % |
|
International Bank of Azerbaijan |
28.52 .52 |
|
Bank Standard |
5.92 .92 |
|
Bank of Baku |
4.41 .41 |
|
Texnikabank |
3.69 .69 |
|
Kapitalbank |
3.69 .69 |
In June 21 member-banks of the currency section participated in the auctions. They concluded 87 deals at 40 trading sessions with the total amount of $135.64m.
The amount of trading sessions on USD constituted 121,181m AZN or $135,314m, deal on EUR were carried out in the amount of 300,530 AZN. As compared to May 2006 the amount of trading sessions with the foreign currency at BBVB rose 4 times, whereas as compared to May 2005 the exchange trading with foreign currency increased 2.32%, $77,22m.
As a result of January to June the currency deals at BBVB made up $440,489m, or 14.62% ($56.18m) more than the figure of 2005 РіРѕРґР°.
The exchange rate of the national currency rose 0.40. The rate of US dollar dropped from 0,8986 manats to 0.8950 manats per 1 USD. In the end, the average sustained rate of AZM in regard to USD made up 0,8956 manats per 1 USD in June, whereas as of May it was 0,9013 AZN, in January 0,9156 AZN. In general, over the past year the exchange rate grew 5.37% in respect to manat.
Monetary market
In January to June 2006 the amount of money mass in Azerbaijan reduced 42.1%.
As of 1 July 2006 money mass (M2) made up 1132.2m manats, against 796.7bn manats of 1 January and 770.26m manats as of 1 July 2005.
In this period the amount of cash money (Рњ0) rose 37.9%, while as compared to 1 July it grew 40.8%. As of 1 July 2006 M0 turned out at 831m manats against 547.4m manats fixed as of 1 January and 534.7m manats fixed as of 1 July 2005.
The amount of non-cash money rose 42.1%, while annual rise was equal to 47%. As of 1 July 2006 non-cash funds grew to 584.8m manats against 249.3m manats fixed as of 1 January and 235.5m manats fixed as of 1 July 2005
According to the National Bank of Azerbaijan, in January to June 2006 the amount of the money base dropped 44.4% amid 22.3% rise in June.
In t his period the reserve money reduced 197.9m AZN, comprising 1083.7m AZN against 885.8m AZN as of early 2006. As compared to last year, manat base rose 275.3m AZN.
As of 1 July 2006 money base in manat made up 963.1m AZN against 687.8m AZN against the beginning of the year displaying 40%-growth. As compared to last year the money mass rose 44.4%.
Parameters of the monetary market
|
Amount, 01.07.06 | |
|
Money mass in extensive understating (Рњ3) |
2353,5 |
|
Money mass on AZM (Рњ2) |
963,1 |
As of 1 July 2006 NIR comprised 1585.5m manats against 1516.6m manats as of 1 June and 1035.9bn manats as of 1 June 2005. Net internal asserts constituted 1280.5m manats against 1204.8m manats as of 1 June and 930.76bn manats as of 1 January 2005, the NIR of commercial banks made up 312.7m AZN against 317m AZN and 108.8m AZN respectively.
Net internal assets constituted 768.1m AZN against 640.7m AZN as of 1 June and 805.9m AZN as of 1 January 2006. The expanded money mass (M3) as of 1 July 2353.5m AZN against 2157.3m AZN as of 1 June and 1841.8m as of 1 January 2006.
Credit market
In June the Azerbaijani banks increased crediting economy by 6.66%, while in the first half-year it grew 15.23%.
As of 1 July 2006, 1660.5m manats of total credits were allocated (including 685.9m manats in national currency and 974.6m manats in hard currency) against 1556.8m manats (including 621.6m manats in national currency and 935.2m manats in hard currency) as of 1 June and 1441m as of 1 January 2005. Overdue credits and loans comprised 64.4m manats against 68.2m manats as of 1 January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit
The short-term credits comprised 878m manats (including 47m manats of overdue loans) against 851.9m manats (including 48.5m manats of overdue loan) as of 1 June and 913.3m manats (48.3bn manats) as of 1 January 2005. As 1 July 58% of short-term crediting and 68.1% of overdue credits fell on hard currency. The long-term credits constituted 782.6m manats (16m manats) against 704.9m manats (15.9m manats) as of 1 June March and 527.7m manats (19.6m manats) as of 1 January 2005. As of 1 July 59.5% of long-term credit and 71.25% of overdue debts fell on hard currency.
As of 1 July two public banks allocated credits of 822.3m manats (+13.34% in June and +9.9% over the year), private banks 838.2m manats (+7.7% in June and +28.34% over the year).
As of 1 July 2006 credit portfolio of banks with foreign capital made up 369.7m manats (+7.8% and +40.3% respectively), including 34.2m manats loaned by foreign banks (+5.2% and +32.05% respectively). As of 1 July credit portfolio of non-bank credit organizations made up 53m manats against 53m manats as of 1 June and 39,600 AZN as 1 January.
As of 1 July average annual rate of banking crediting in the economy comprised 15.85% in national currency against 15.83% as of 1 June and 15.14% as of 1 January 2005. With consideration of inflation rate of 5.6% in first half year of 2006, real credit rate made up 10.25%. The average annual rate on banking crediting the economy made up 17.5% in foreign currency against 17.53% as of 1 March and 17.11% as of 1 January 2005.
As of 1 July the average annual rate of banking crediting of legal entities made up 14.47% in national currency against 14.52% as of 1 June and 14.36% as of 1 January 2005, while real rate was 8.87%. The average annual rate of banking credit of legal entities constituted 15.31% in foreign currency against 15.47% as of 1 June and 15.37% as of 1 January 2005.
As of 1 July average annual rate on banking crediting of physical entities comprised 19.53% in national currency against 19.24% as of 1 June and 17.36% as of 1 January 2005, real rate was 13.93%. Average annual rate of banking crediting of physical entities made up 21.73% in foreign currency against 21.64% as 1 June and 21.31% as of 1 January 2005.
Banking sector
In June the deposit base of Azerbaijani banks grew 6.38%, while since the beginning of the year its growth has made up 25.57%.
As of 1 July the total amount of bank deposits and savings of legal and physical entities made up 1625.4n manats against 1527.9bn manats as of 1 June and 1294.4m manats as of 1 January 2006. 829m manats of the total sum fell on manat reserves, while the rest - on hard currency. In June the growth of deposits in manat made up 24.4%.
In July the amount of savings and deposits of physical entities grew 5.7% amid 14.25%.
The savings and deposits of legal entities of individual clients increased 24.29%, while deposits of corporate clients grew 36.2%
As of 1 July the amount of savings and deposits of physical entities at banks grew to 614.6m manats against 581.4m manats as of 1 June and 494.5m manats as of 1 January 2005. As of 1 July the amount of deposits of legal entities made up 1081.4m manats against 946.5bn manats as of 1 June and 793.5m manats as of 1 January 2006.
As of 1 July 69.3bn manats (+16.8% a month) of savings and deposits of physical entities was implemented in national currency, while 475.5m manats (+2.8%) in hard currency. 253.3m manats of deposits of legal entities (+8.4%) were implemented in manats, while 612.6bn manats (-1.45%) in hard currency.
As of 1 July 2006 the average rate of bank deposits of physical entities in the national currency comprised 10.96% against 10.89% as of 1 June and 8.92% as of 1 January 2006. the real deposit rate made up 5.46% amid real inflation ratio was 5.6%. The average rate of banking deposit in hard currency was 11.02% against 10.84% as of 1 June and 10.19% as of 1 January 2006.
As of 1 July the average rate of bank deposits of legal entities in the national currency comprised 8.88% against 9.50% as of 1 June and 7.41% as of 1 January 2006 while real rate was 3.28%. The average rate of banking deposit of corporate client in hard currency is 7.36% against 7.41% as of 1 June and 6.83% as of 1 January 2006.
As of 1 July the average rate of bank deposits of physical entities in the national currency comprised 12.29% against 11.88% as of 1 June and 10.70% as of 1 January 2006, while real rate was 6.69%. The average rate of banking deposit of individual client in hard currency is 11.35% against 11.20% as of 1 June and 10.71% as of 1 January 2006.
As of 1 April 44 banks had 395 branches against 395 branches and 49 divisions as of 1 July 2005.
In June the number of branches rose 1.3%, while since the beginning of the year 5.6%. Network of branches rose 2.08% and 2,04 times respectively.
With a rise of 21.9% the statutory capital of bank made up 473.49m manats in the first half-year, or 49.2% up as compared to last year.
In accordance with the schedule adopted by the NBA, the following normative requirement set for aggregate capital of banks set as of 1 July 2006 and should comprise as minimum 6,400m manats, as 1 January 2007 8,200m manats, as 1 July 2007 10m manats.
Grouping of banks on amount of aggregate capital of banks
|
Up to 3.5m AZN |
from 3.5m AZN to 5m AZN |
From 5m AZN to 10m AZN |
Over 10m AZN |
Total number of banks | |||||||||
|
number |
Special weight in total bank capital, in % |
number |
Special weight in total bank capital, in % |
number |
Special weight in total bank capital, in % |
number |
Special weight in total bank capital, in % | ||||||
|
30-06-2005 |
6 |
5,8 |
16 |
23,5 |
15 |
35,4 |
4 |
35,2 |
41 | ||||
|
31-12-2005 |
2 |
1,8 |
9 |
12,3 |
23 |
41,2 |
8 |
44,7 |
42 | ||||
|
31-03-2006 |
2 |
1,5 |
4 |
4,8 |
29 |
49,9 |
8 |
43,8 |
43 | ||||
|
30-06-2006 |
2 |
1,4 |
3 |
3,4 |
29 |
49,9 |
9 |
45,3 |
43 | ||||
|
Data from 30 June and 31 December 2005 did not include indices on two banks, while as of 31 March and 30 June 2006 on one bank | |||||||||||||
In the first half of 2006 the Ministry of Finances has placed 40,365m manat worth stock 5.43 times. 9 auctions on placement of T-bills were held at the secondary market in the amount of 4,201m manats, which comprises 10.41% of entire placement.
No operation was held at the secondary in this period due to absence of placement till May.
Initial placement of short-term bonds worth 259,303m manats, which was 4.74% more than last year. Operations held at the secondary market amounted to 33,951m manats amid rise of 3.42 times.
In January to June 36,909m manats was placed at the corporate shares market (78.55% up as compared to 2005), while at the secondary market on short-term notes with the total amount of 3,019m manats, or 825 manats down as compared to 2005. Initial placement of corporate bonds comprised 9,621m manats amid a rise of 31.84 times against first half year of 2005, while at the secondary market it was fixed at $0,993m manats amid a rise of 9.41 times.