MOODY`S: AZERBAIJANI BANKS KEEN ON RISKS AND BYPASS CONCENTRATION LIMITS
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
-
Azerbaijan's financial standing continues to strengthen as the country's foreign currency reserves have surged to $71 billion as of January 1, 2025, according to the Ministry of Finance. This figure, which includes reserves held by the State Oil Fund of Azerbaijan (SOFAZ) and the Central Bank of Azerbaijan (CBA), far exceeds the nation's external debt, which stands at a fraction of its reserves, specifically nearly 14 times less. This robust reserve position reflects Azerbaijan's fiscal stability and the government’s strategic economic management.
-
According to operational data from the Ministry of Energy of Azerbaijan, in January 2025, the country produced 2.3 million tons of oil, including condensate, and 3.9 billion cubic meters of gas.
-
The State Oil Company of Azerbaijan (SOCAR) has opened a representative office in Albania and is set to launch a specific project this year, the Albanian company "Albgaz" announced.
-
"Azerbaijan is currently among 54 middle-income countries," said Shahmar Movsumov, head of the Economic Affairs and Innovative Development Policy Department of the Presidential Administration, during the presentation of the World Bank’s World Development Report 2024 in Baku on February 10.
Leave a review