On 20 November the
International Monetary Fund concluded a staff visit to Baku Azerbaijan Azerbaijan
6. Recent actions by
the CBA to strengthen the banking system are welcome steps provided they are
supplemented with measures to reduce vulnerabilities. The recent increase of
the minimum capital requirements and impetus to develop a private sector credit
bureau are steps in the right direction. The mission urges the authorities to
strengthen the non-performing loans (NPL) and the loan-loss-provisions (LLP)
regulations, before the deadline of the new capital requirement to ensure the
correct recording of NPLs, LLPs, and capital levels by banks. Developing a
contingency plan to deal with banks failing to increase their capital will be
key to ensure an orderly exit of these banks. Prudential measures could help
tackle the accelerated pace of credit, particularly on consumer lending, and
the high loans to deposits ratio and foreign exchange exposure of unhedged
borrowers. Though preparations are still ongoing, the mission regrets further
delays in the joint IMF/World Bank FSAP update at this crucial time for the
banking system. As agreed with the authorities, the FSAP will take place in
early 2014.
7. With the IBA
privatization put on hold, the authorities need to adopt measures to improve
IBA’s soundness and contain contingent liabilities on sovereign resources. Key actions include
developing a sustainable and viable banking model for IBA in the near term and
discouraging any additional borrowing until the new business strategy is in
place. The mission also encourages the CBA to pay particular attention to IBA
as part of the supervision of the banking system.
Source: Republic of Azerbaijan
– Aide Memoire of Staff Visit (2012-11-20)
On 21 November the corporate
bank PASHA Bank (“PAŞA Bank” Açıq Səhmdar Cəmiyyəti) announced that it had
entered into an arrangement with the Swiss bank Banque Cantonale de Genève (“BCGE”)
that will enable private banking clients of PASHA Bank to take advantage of
investment accounts, fiduciary deposit accounts, and other private banking
services through the Swiss bank.
Total assets of
PASHA Bank were 636,202,000 AZN (630 mln EUR) as of 30 September 2012 , and total assets of BCGE were 16,855,474,000
CHF (14,035 mln EUR) as of 30 June 2012 .
Sources:
On 19 November the commercial
bank Muğanbank (“Muğanbank” ASC) published summary information on its financial
position as of 1 November. Total assets
on 1 November were 269,065,350 AZN (264 mln EUR), up 2.6% from the month-earlier
date. Retail deposits totaled 78,843,770
AZN and total loans amounted to 204,665,710 AZN. (On 1 November the exchange rate was 1 EUR =
1.0175 AZN.)
At present Muğanbank
is offering the following rates on 12-month retail time deposits of € 1,000 or
equivalent:
EUR: 4.0%
USD: 11.0%
AZN: 11.0%
Sources:
Fərdi bankçılıq – Əmanətlər (undated)
In other news, on Monday,
19 November, the State Committee for Securities (Qiymətli Kağızlar üzrə Dövlət
Komitəsi – QKDK) approved a request for an initial public offering by Ganjabank
(“Gəncəbank” ASC), a bank headquartered not in Azerbaijan’s capital city, Baku,
but in the second largest city of the country, Ganja (Gəncə).
The offering,
amounting to 35,000,000 AZN (34.8 mln EUR), will consist of 1,750,000 shares
with a face value of 20 AZN (19.86 EUR) each, and will increase the bank’s total
capital from 15 mln AZN to 50 mln AZN.
(At time of writing 1 EUR = 1.0068 AZN.)
Source: Noyabr
ayında QKDK tərəfindən aşağıdakı şirkətlərin qiymətli kağızlar buraxılışı
qeydiyyata alınmışdır (2012-11-19)
Mark Pleas
[contact]
