The report"s author, Lev Dorf, believes the credit risk assessment standards have somehow been bypassed or the standards are not applied evenly and regularly.
The appetite for risks especially increased in 2006-2008, when the private banks" loan portfolio rose by 500%. This caused decrease in the asset quality later.
Tolerance to risks is observed now too. The ratio of the sum of the 20 largest credits to the basic capitals of the banks rated by Moody"s (except the International Bank of Azerbaijan (IBA) is 150%. The credits exceed the banks" capitals considerably. The situation is particularly horrible about IBA - the 20 largest credits exceed the basic capital more than 2.5 times.
Moody"s rates five banks in Azerbaijan - IBA, Capital Bank, Bank Respublika, Tekhnika Bank, and Uni Bank.--10В--
Economics
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Azerbaijan’s economic growth is expected to continue in the coming years, although forecasts from ING Group and the United Nations (UN) present slightly differing views on the pace of recovery. ING Group, the largest banking institution in the Netherlands, predicts modest growth in Azerbaijan’s gross domestic product (GDP), while the UN offers a more optimistic outlook.
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The average age of taxi cars in Azerbaijan has dropped from 15 to 7 years, according to a statement from the Azerbaijan Ground Transport Agency (AYNA), which attributes this change to the implementation of reforms.
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Kazakhstan has bolstered its position in international grain markets by resuming exports to Iran and Azerbaijan, according to the country’s Ministry of Agriculture.
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In recent years, Azerbaijan has quietly fostered a vibrant startup ecosystem that is beginning to make waves on the international stage. From digital education platforms to innovations in agrotechnology, these startups reflect the country's growing embrace of technology and entrepreneurship. A combination of government support, international collaboration, and bold entrepreneurial vision has propelled several Azerbaijani ventures into the global spotlight.
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