Baku, Azerbaijan, April 28
By Zeyni Jafarov - Trend:
The capitalization of most Azerbaijani banks showed positive dynamics in 2020 despite the closure of four banks, ‘Asian Development Outlook-2021’ report of the Asian Development Bank (ADB) said, Trend reports on Apr.28.
According to the report, the total capital of the local banks amounted to 14 percent of total assets.
The banks operated profitably in the reporting year, and as a result of improved banking supervision, the share of problem loans, which accounted for 8.3 percent of total loans at the end of 2019, fell to 6.1 percent by the end of 2020.
Along with the above, ADB noted that despite the drop in the share of deposits in foreign currency from 60.9 percent to 56.3 percent by the end of 2020 and a decrease in issued loans in foreign currency from 34.6 percent to 29.7 percent, the dollarization of the banking system of Azerbaijan remains at a high level.
According to ADB, interest rates on deposits in Azerbaijan by the end of last year averaged 5.7 percent, while average rates on loans, reflecting a softer monetary policy, fell to 9.3 percent.
The Asian Development Bank also stated that monetary policy in Azerbaijan this year will be aimed at controlling inflation, which will simultaneously support economic recovery.
In 2020, four insurance companies, namely, Amrah Sigorta, AXA MBASK, Standard Insurance, and Revan Sigorta were closed.
----
Follow the author on Twitter: @jafarov_zeyni
