Bloomberg: Azerbaijan’s Banks Halt Foreign-Currency Sales as Crisis Deepen

Bloomberg: Azerbaijan’s Banks Halt Foreign-Currency Sales as Crisis Deepens Vugar Bayramov: “The manat will continue to lose as long as demand for the dollar exceeds offer by many times at auctions organized by the central bank”. Banks in the Azeri capital completely halted foreign-currency sales as demand by businesses and households soared and the manat continued to depreciate against the dollar. None of the 15 lenders visited in central... Read More

Azerbaijan Economy; Brief Overview for 2013 and Perspectives for 2014

Azerbaijan Economy; Brief Overview for 2013 and Perspectives for 2014 CESD- Center for Economic and Social Development, developed brief presentation on Azerbaijan Economy in 2013 and expectations from 2014. Download Full Azerbaijan Economy_2013_2014 Presentation File Here  Read More

What is happening in the Banking Sector in Azerbaijan?

What is happening in the Banking Sector in Azerbaijan? After closing the year of 2013 with a credit boom, the banking sector was unable to withstand the cold months of the current year: commercial banks almost halted all personal lines of credit. Despite the optimistic view of the Central Bank of Azerbaijan Republic regarding the general situation, the commercial banks have remained skeptical. After imposing loan restrictions, some of the banks even... Read More

Banking System in Azerbaijan; On the light of New Transformation

Banking System in Azerbaijan; On the light of New Transformation The paper touches upon three main problems in Azerbaijan banking system, their solving and the estimated direction of its future prospect. The first problem is a trend between incomes coming from the interests of banking credits and compulsory resource allocation and solutions related with this issues; the second problem is an improvement of banking capital, to bring it more sustainable... Read More

Over 83% of deposits returned to customers of bankrupted Royal Bank

Over 83% of deposits returned to customers of bankrupted Royal Bank As of 1 October 2012 the depositors of the bankrupted Royal Bank received compensations in the amount of AZN 12,262,000. According to sources in the Azerbaijan Deposit Insurance Fund, this makes over 83.3% of the total amount of payments subject to compensations which equals AZN 14,718,000. “Meanwhile, the deposits in the amount of AZN 26,731,000 have been insured. Thus,... Read More

Int’l Bank of Azerbaijan signs its first contract since Islamic window launch

Int’l Bank of Azerbaijan signs its first contract since Islamic window launch The International Bank of Azerbaijan (IBA) and the Islamic Corporation for Development of Private Sector (ICD) have signed the $20 million Commodity Murabaha Agreement. “Commodity Murabaha means sale of certain specified commodities, through a metal exchange, on a cost plus profit basis,” IBA Islamic Banking Director Behnam Gurbanzadeh said, Fineko reports. The... Read More

Banking sector in Azerbaijan; from bankruptcy to regression?

Banking sector in Azerbaijan; from bankruptcy to regression? “There is not any case in the foreign experience that a minimum requirement for authorized capital is increased by five times”, said in an interview with “Echo” the chairman of the Center for Economic and Social Development Vugar Bayramov . In this regard, in his opinion, this is a serious administrative decision, despite the fact that it will enter into force on January... Read More

Central Bank of Azerbaijan Moves to Strict Measures

Central Bank of Azerbaijan Moves to Strict Methods Central Bank of Azerbaijan (CBA) applies harden requirement in banking sector after bankruptcy of Royal Bank, one of top banks in Azerbaijan.  CBA increased up amount of minimum volume of total capital for to AZN 50 million ($ 64,1 million) from AZN 10 million ($  12,4 million) . The new standard on the minimum volume of total capital comes into force from 01 January 2014, the Central Bank. “This... Read More