Bank Of Baku

Azerbaijan’s banking system involves funds from financial sector

Azerbaijan’s banking system involves funds from financial sector
# 24 December 2010 15:26 (UTC +04:00)
Baku. Vahab Rzayev – APA-Economics. 48.8% of Azerbaijan’s commercial banks’ liabilities are the loans and deposits given by financial sector, 45% are the deposits of legal entities not engaging in financial sector. As you see, AZN 5.185 bln liabilities have been allocated by financial sectors.

According to APA-Economics, belonging of half liabilities of banks to financial sectors is dangerous for banking system. Thus, the most of loan and deposits given by financial sector is short-term liabilities and being of them in a large scale increases the short-term risks of banks. At the same time, being of deposits of non-financial sector and individuals at high level increases the financial stability of banks.
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