FMSB: Local banks work with profit

By Azernews

By Amina Nazarli

The total net profit of banks operating in Azerbaijan was 216.8 million manat ($128.4 million) as of August 1, 2017, according to the data of the Financial Market Supervisory Body (FMSB).

In July 2017, interest income of banks amounted to 1.145 billion manat ($678 million), including 845.5 million manat for loans. The interest expenses of banks amounted to 559.1 million manats ($330 million).

During the reporting period banks directed 297.3 million manat ($175.7 million) to form reserves to cover possible losses on assets.

Currently, 31 banks are implementing their activities in Azerbaijan.

The licenses of 11 banks were withdrawn in 2016 due to the discrepancy of their total capital with the minimum requirements [50 million manats-$29.4 million] and default to the creditors.

Earlier, President of the Azerbaijan Bank Association (ABA) Zakir Nuriyev and Executive Director Yunus Abdulov met with Reto Weyermann Program Manager, State Secretariat for Economic Affairs (SECO) Macroeconomic Support Section, and Simone Haeberli, Deputy Regional Director Swiss Cooperation Office in the South Caucasus to discuss the current situation in bank sector.

The meeting discussed the role of the ABA in the formation of laws and regulations governing the banking sector and its cooperation with the relevant authorities. They also exchanged views on the newly established Auction Center, the Bank Ombudsman and their activity directions.  

ABA was founded in 1990 by commercial banks. The main goal of the ABA was to protect the interests of member organizations, to help them meet the needs of different types of business services and to coordinate their activities.