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Most banks in Azerbaijan receive deposits with the condition of more than 12% - MONITORING

Most banks in Azerbaijan receive deposits with the condition of more than 12% - <font color=red>MONITORING</font>

01 August 2012 11:05 (UTC +04:00)

According to Deposits Insurance Fundâ€™s conditions, the deposits received with the condition of more than 12%-annual YTM are note insured. As well, fundâ€™s compensation no depending on sum of the deposit is not more than AZN 30,000. IN connection with this, APA-Economics has conducted monitoring in several commercial banks. It was known that, most of banks in Azerbaijan offer deposits with the condition of more than 12%-annual YTM. All banks acknowledged that, deposits with these interest rates were not insured.

Demirbankâ€™s YTM in Goy (Blue) deposit type is +12% (near 13.5%). Itâ€™s interesting that, Demirbankâ€™s membership to ADIF is noted near the information about deposits, but it is not noted ADIFâ€™s not insuring the deposits with the condition of more than 12%-annual YTM.

Bank says the deposits with more than 12%-YTM are not protected. But itâ€™s few who makes deposits wit this interest: â€œmost of clients make deposits for a year and this are deposits with below 12%-interestâ€.

Interest rates of Unibankâ€™s deposits reach 13.4% on several deposits (deposits in dollar for 2 years on the â€œtermâ€ deposit). Bank acknowledges that, those deposits are not protected. Although this is not shown on the site, they are noted in the note books.

Unibank says the clients interest in this issue, gradually. Consequently, 95-96% of deposits were made with the YTM of up to annual 12%.

Bank Nikoilâ€™s interest rates make 12.5% (deposits in manat for 2 years). IF the sum is over AZN 100,000, the YTM increases to 14.6%.

Bank of Bakuâ€™s YTM reaches 14% (AZN 50,000 deposits for 3 years on Progressive Deposit type). According to fund, these deposits are not protected. This issue is not noted when the information about type and conditions of deposits are released.

Turanbankâ€™s YTM is 15.5% (on several versions of Xurjun, Sandigja, Khazina and Dafina deposits).

Bank says the deposits with more than 12%-annual YTM are not insured. The client is informed about bankâ€™s doncition. Besides, if the sum is with the high interest, itâ€™s impossible to make deposit more than in amount of AZN 30,000 per day.

Note that, other banks also offer such deposits. These include Bank Standard (13%), Parabank (13.5%), NBCBank (14%), Ganjabank (14%) and etc.