Azerbaijan, Baku, 22 July / Trend corr. I.Khalilova / The deposit data of the banking system in Azerbaijan has increased by 63% within the recent 12 months, as well as the growth rate varies between 67% and 68% for three or four years, Rufat Aslanli, Deputy Chairman of the National Bank of Azerbaijan (NBA), said. As for 1 June 2008, the deposit volume of individuals and juridical entities made up AZN 3857, 8mln and AZN 1.603.3mln fell on population deposits.
There are several factors for such growth of banking deposits. First of all, this is due to restore of confidence to bank system that is accompanied by eliminating of weak banks from the bank sector. This process started in 2000 and within the framework of the bank sector restructuring program. As a result 30 banks were cancelled. The measures are taken to make the bank control to meet international standards. Shortcomings of these standards were revealed by experts from the International Monitory Fund and World Bank in 2003.
Second, the new Bill on 'Banks', which came into force in 2004, reflects all banking elements: join bank market, licensing process, current activity, work with problematic banks and to protect interests of population and investors. All these measures cause increase of confidence to bank sector, Aslanli said. Today, population invests into bank system, unlike several years ago when population did not trust this system.
However, the current growth of banking deposits, according to Aslanli, does not connected with investments, but is accompanied with increase if incomes of population.
The inflow of population's investments into the bank system is a positive process, which allows banks to invest free funds into the spheres, which need these credits. Within the framework of macro economic regulation, this process cause increasing of NBA's possibilities, as the legal funds underwent monitory regulating tool.
On 22 July, the official currency rate is 0,8048 AZN/USD.
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