Assets of banking sector declined by 11% (AZN 3.5 billion) to AZN 27.9 billion, which is equal to 63% of GDP, APA-Economics reports quoting the 2017 annual report of the Cabinet of Ministers.
According to the report, the decline was caused by restructuring measures, as well as removal of deposits from the sector. Assets and liabilities in foreign currency make up 47% and 67% in total assets.
41% or AZN 11.3 billion of bank assets makes up loans given to clients. Significant part of the loan portfolio (67%) falls to share of business loans.
As at the end of December, correspondent accounts in the Central Bank of Azerbaijan made up AZN 1.6 billion, cash funds – AZN 1.2 billion. Liquid assets made up 23.9% of total assets. Instant liquidity ratio was 62%.
Liabilities dropped 18% to AZN 24.2 billion, 70% of liabilities was deposits, of which 44.6% made up personal savings. Personal savings increased by 1.5% to AZN 7.5 billion. Stability in the exchange rate of manat caused dedollarization to fall from 80% to 67%.
Total capital increased 32.4% to AZN 2.2 billion, capital adequacy was 12.7%, which is 10% higher than norm.