Moody’s: Capital adequacy in banking sector improved following measures for IBA normalization

Moody’s: Capital adequacy in banking sector improved following measures for IBA normalization
  • Clock-gray 09:01
  • calendar-gray 24 May 2018

Troubled loans stabilized on the background of restoration of crediting in Azerbaijan, Peter Paklin, Assistant Vice President at Moody's Investors Service, said at the annual summit.

 

According to him, capital adequacy in the banking sector improved following the measures for IBA normalization. Paklin also touched upon the risks in banking sector.

 

‘Discrepancy risks still remain in the corporate sector. However, state provides support to Azerbaijan’s banking sector’, he added.

 

‘The dollarization has been declining for three years. However, the dollarization in the banking sector is at the high level.2015’s devaluation affected the banks. According to our calculations, short open currency position reached its worst. 2017 cause improvement in capitalization in Azerbaijan’s banking sector. However, there are still risks’. 

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