Bank Of Baku

Lending is close to a critical point in Azerbaijan’s banking system

Lending is close to a critical point in Azerbaijan’s banking system
# 28 January 2009 13:33 (UTC +04:00)
Baku. Vahab Rzayev – APA-Economics. Loans lent to customers account for AZN 65% of total assets in Azerbaijan’s banking system, almost equal to 67.7% a year ago, said the National Bank of Azerbaijan.
This level fluctuated 1-2% but not going beyond the 70% barrier.
The higher this level indicates a bank is loaned up and its liquidity is low. The higher the percentage the more risky a bank may be to higher defaults. 70% is considered as a risky point in the world banking practice, indicating no assets instruments other than loans work in a bank.
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