Finance

Home page

Finance

Azeri banksâ€™ net interest margin is too high

22 December 2008 16:01 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. The net interest margin for loans and deposits in national currency was 6.11% while the measure of the gap is 6.81% for loans and deposits in foreign currencies.
The National Bank of Azerbaijan said the average deposit rate was 11.88% per annum for home-currency deposits, 8.7% for foreign-currency deposits, and average lending rate was 17.99% in the national currency and 14.89% for foreign currencies as at November 1.
The net interest margin as at November 1.

Margin	01.11.2008	01.01.2008
Average, manat	6,11%	5,61%
Average, foreign currencies	6,82%	4,04%
Legal entities, manat	5,27%	5,45%
Legal entities, foreign currencies	7,30%	6,04%
Individuals, manat	8,69%	7,82%
Individuals, foreign currencies	8,75%	9,23%

Average deposit rates remained unchanged while lending rates increased and enlarged the margin.
The net interest margin is usually 2.2%-2.5% in the developed countries.