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Azerbaijan-based banksâ€™ sudden liquidity is higher than quota

05 May 2011 11:40 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. As of April 1, 2011, the cash funds and correspondent accounts in the structures of Azerbaijan-based banksâ€™ assets made AZN 2.002 bln. According to APA-Economicsâ€™ calculations, the demand deposits in banks made AZN 2.255 bln.

Cash funds and correspondent accounts are the integral part of demand assets in world practice and highest liquid funds of banks. Note that, demand assets also include assets like government short-term securities, but it can be not reflected in calculations due to small volume in Azerbaijan. At the same time, the demand assets (including cash funds and correspondent accounts) / demand deposits ratio makes 88.8%. Note that, demand assets/demand liabilities ratio is assessed as sudden liquidity index of banks. Demand liabilities also include demand deposits from financial sector. But, there is not a statistics on this index and thatâ€™s why itâ€™s impossible to calculate exactly. However, itâ€™s known that, the sudden liquidity in Azerbaijan is higher than 15%-quota in the world. Even, if the customersâ€™ deposits as demand liabilities include the credits and deposits from financial sector, this ratio will reach 30.6% and this will be higher twice.