Azeri banks’ net interest margin is too high

Azeri banks’ net interest margin is too high
# 22 December 2008 16:01 (UTC +04:00)
Baku. Vahab Rzayev – 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.
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