Bank Of Baku

Absolute liquidity is very high in Azerbaijan’s banking system

Absolute liquidity is very high in Azerbaijan’s banking system
# 31 October 2008 13:01 (UTC +04:00)
Baku. Vahab Rzayev – APA-Economics. As of October 1, Azerbaijan-based banks’ total net liquid assets-deposit ratio stood at 51.9 percent, up 2.3 percentage points on January 1, 2008 and up 12.9 percentage points on October 1, 2007.
One of the main indicators showing a bank’s financial position is liquid assets-liabilities ratio.
If this ratio is higher than 30%, this shows stability and healthiness of the banking system.
Taking into account other liabilities except deposits, liquid assets-liabilities ratio is 44.1%, almost level with a year earlier.
Absolute liquidity ratio or cash position ratio establishes a relation between absolute liquid assets to quick liabilities. This ratio is high in Azerbaijan.
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