Finance

Home page

Finance

The share of long-term financial resources goes up in Azerbaijanâ€™s banking system

29 November 2008 09:47 (UTC +04:00)

Baku. Vahab Rzayev-APA-Economics. Deposits for longer than 1 year accounts for 46.2% of total deposits made by individuals and legal entitled in banks of Azerbaijan, compared to 36.2% during the period last year, said the National Bank of Azerbaijan in a financial review for September 2008.
The total amount of deposits increased by 41.5%, year-on-year, to AZN 4 207.2 million as of October 1.
Also, money deposited for a period of 9 months to 1 year rose 1.2% to account for 34.9% of the total deposits.
Thus, funds deposited in banks for longer than 9 months accounted for 81.1% of deposits.
While money deposited for a period of 9 months or 1 year funds are not considered long-term in world practice, we can conclude that the financial stability of banks is at a high level in Azerbaijan given the characteristics of lending in the banking sector of the country.
Usually, most of the loans offered by banks in Azerbaijan are short-term consumer loans, which is a result of the banksâ€™ balancing term liquidity.
It should be noted that the share of long-term loans increases in Azerbaijan.