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--
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