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Azerbaijan sees rise in average daily rest of high liquid assets in bank sector

17 August 2012 14:25 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. The liquidity level of banks in Azerbaijan is at the sufficient level for fulfilment of liabilities of creditors and borrowers timely, said the Financial Stability Review of Central Bank.

Review says the preventive regulation and improvement of risk-management systems in the banks allows assets to stay in adequate level. Liquidity of banks at the current year was acceptable. Liquid assets/normal assets ratio was 10% higher than minimum level. Share of liquid assets in current liabilities slipped to 47% from 59%. Along with this, instant liquidity ratio rose to 73% from 71% (minimum limit â€“ 30%). Average daily rest of high liquid assets rose AZN 226.1 mln or 11% to AZN 2,275.2 mln in January-June.

As of July 1, the share of cash, nostro accounts, and government securities in the high liquid assets made 30%, 26% and 19%. Share of bankâ€™s accounts in Central Bank in liquid assets makes 25%.

According to Review, currency structure of assets and passives were balanced to manage the impacts of exchange rate risks. Share of assets in foreign currencies the in total assets dropped to 38.7% from 43.6%. Share of liabilities in foreign currencies in the total liabilities decreased to 46.9% from 53.7%.

CB experts say quality of loan portfolio of the banks was acceptable. Share overdue credits in total credits made 6.5%.