As of late October Azerbaijani banks’ liabilities to the country’s Central Bank (CBA) decreased to 566.6 million manats, or almost 3-fold compared to the volume of liabilities in early 2017, according to the report of the country’s Financial Market Supervisory Authority.
Since the beginning of the year, banks have reduced their liabilities by 21.4%, from 29.53 billion manats to 23.22 billion manats, according to the report. The main share of liabilities accounted for deposits – 15.64 billion manats (a 4.7% reduction since the beginning of the year).
Since early 2017, the assets of the banking sector decreased by 16.3%, and amounted to 26.31 billion manats as of November 1.
The main reason for the assets’ reduction was a 26.5% decrease in the volume of loan portfolios of banks, to 11.71 billion manats compared to the volume of banks’ loan portfolios in the beginning of the year. Loans allocated to banks and other financial institutions also significantly reduced. Since the beginning of the year, their volume has decreased 2.9-fold, to 292 million manats.
There are 31 banks in Azerbaijan, including two state-owned ones. (Trend/Business World Magazine)