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Azerbaijan-based banks ranked by liquidity

19 November 2008 07:42 (UTC +04:00)

Baku. Elnur Huseynguluyev â€“ APA-Economics. APA-Economics provides ranking of Azerbaijan-based bank organizations for their various figures and financial performance.
The project aims to highlight banksâ€™ financial performance and update the public and potential investors. In the table below, bank organizations are ranked by liquidity rate (loan-deposit ratio) in accordance with the available data as at October 1, 2008.
This indicator is interesting for a depositor (corporate or individual bodies).
The higher the ratio, the more the bank is relying on borrowed funds, which are generally more costly than most types of deposits.

Banks		Credit/ Deposit
1	Birlik Bank	33,00
2	Debut Bank	22,00
3	Kafkaz Development Bank	11,00
4	AccessBank	9,22
5	Gandjabank	6,73
6	Atrabank	6,11
7	Deka Bank	4,05
8	Azerbaijan Credit Bank	3,94
9	Kredo Bank	3,19
10	UniBank	3,11
11	Azerdemiryolbank	2,69
12	United Credit Bank	2,56
13	Bank Standard	2,55
14	Gunaybank	2,49
15	NBCBank	2,39
16	Technikabank	2,28
17	Royal Bank of Baku	2,24
18	Bank of Azerbaijan	2,12
19	Nikoil Bank	2,08
20	Mughan Bank	1,95
21	Zamin Bank	1,92
22	Bank Respublika	1,89
23	Turanbank	1,53
24	Amrahbank	1,35
25	Parabank	1,14
26	AGBank	1,14
27	International Bank of Azerbaijan	1,11
28	Azerbaijan Industry Bank	1,06
29	Bank of Baku	1,06
30	Khalg Bank	1,04
31	Bank Avrasiya	1,04
32	Azer-Turk Bank	1,03
33	Melli İran Bank, Baku branch	0,99
34	Rabitabank	0,91
35	Kapital Bank	0,84
36	AtaBank	0,80
37	Pasha Bank	0,79
38	Yapı Kredi Bank Azerbaijan	0,20

The optimal liquidity ratio is in the range of 0.9 and 1.1 by good practice. That is to say, it is more optimal and efficient when loan portfolio and deposit portfolio are nearly equal.
As seen above, the ratio is around 1 for 7 banks (International Bank of Azerbaijan,, Azerbaijan Industry Bank, Bank of Baku, Khalg Bank, Bank Avrasiya, Azer-Turk Bank, Melli Iran Bank-Bak and Rabitabank). That is to say, these banks are more reliable for depositors to deposit money. These banks also have the opportunity to further expand their loan portfolio.