Finance

Finance

Azerbaijan-based banks ranking by liquidity

07 April 2009 14:44 (UTC +04:00)

Baku. Elnur Huseynguluyev â€“ APA-Economics. APA-Economics provides ranking of Azerbaijan-based banks for their various figures and financial performance.
The project aims to highlight banksâ€™ financial performance and update the public and potential investors. In the table below, bank organizations are ranked by liquidity rate (loan-deposit ratio) in accordance with the available data as at January 1, 2009.
This indicator is interesting for a depositor (corporate or individual bodies).
The higher the ratio, the more the bank is relying on borrowed funds, which are generally more costly than most types of deposits.

Banks		Loan-Deposit Ratio
1	Birlik Bank	30,95
2	Debut Bank	29,63
3	Kafkaz Development Bank	15,51
4	Gandja Bank	10,51
5	AccessBank	9,60
6	NBCBank	6,38
7	Atrabank	6,01
8	Azerbaijan Credit Bank	5,40
9	Deka Bank	4,07
10	Azerdemiryolbank	3,41
11	United Credit Bank	2,83
12	Kredo Bank	2,79
13	Gunay Bank	2,66
14	Nikoil Bank	2,64
15	UniBank	2,58
16	Melli İran Bank Baku	2,49
17	Royal Bank	2,18
18	Turan Bank	2,17
19	Bank of Azerbaijan	2,08
20	Bank Standard	2,06
21	Bank Respublika	1,92
22	Texnikabank	1,85
23	Mughan Bank	1,66
24	Zamin Bank	1,65
25	Bank Avrasiya	1,30
26	Amrahbank	1,21
27	Xalg Bank	1,21
28	AGBank	1,19
29	Para Bank	1,18
30	International Bank of Azerbaijan	1,16
31	Azerbaijan Industry Bank	1,11
32	Bank of Baku	1,07
33	Rabitabank	0,89
34	Azer-Turk Bank	0,84
35	AtaBank	0,79
36	Kapital Bank	0,76
37	YapıKredi Bank Azerbaijan	0,61
38	Pasha Bank	0,54
39	Kovsrr Bank*	-

KovsÉ™r Bank* doesnâ€™t lend interest-bearing loans because it operates on the Islamic principle of banking.

The optimal liquidity ratio is in the range of 0.0 and 1.2 by good practice. That is to say, it is more optimal and efficient when loan portfolio and deposit portfolio are nearly equal.
As seen above, the ratio is around 1 for 7 banks. That is to say, these banks are more reliable for depositors to deposit money. These banks also have the opportunity to further expand their loan portfolio.