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Devaluation affects lending capacity of private banks more than state banks - ANALYSIS

Devaluation affects lending capacity of private banks more than state banks - <span style="color: red;">ANALYSIS

13 July 2015 11:38 (UTC +04:00)

Baku - APA-Economics. As of June 1, Azerbaijan-based state banks gave AZN 7,335,600,000.

According to Central Bank of Azerbaijan, if we take into account that total of AZN 20,468,100,000 was given as of June 1, share of loans given by the state banks in the provision of crediting makes 35.8%.

Lending by state banks declined AZN 78.4 mln in May.

Totally, AZN 103.1 mln-decline was observed in the loans given by state banks since devaluation in February. At the end of February, the state banks gave AZN 7,438,700,000 loans.

Private banks gave AZN 12.542 bln. In April, the customers took AZN 12,590,900,000 from private banks. So, the lending capacity of the private banks fell to AZN 48.1 mln.

Compared to end of February, as of June 1 the loans given by the private banks dropped AZN 157.1 mln. As of March 1, the loans given by private banks totalled to AZN 12,599,100,000.

As it’s clear from the statistics, the devaluation affected lending capacity of private banks more than state banks.

Currently, two state banks operate in Azerbaijan – International Bank of Azerbaijan and Azer-Turk Bank. Number of private banks is 43.