Fitch Ratings: Azerbaijani banking sector still observes problems


July 23, Fineko/abc.az. There are still problems in the banking sector of Azerbaijan.

International rating agency Fitch Ratings informs that the banking sector of Azerbaijan remains weak that conforms to indicator “b” on Fitch Bank System Indicator (BSI).

In Fitch’s opinion, the share of non-performing loans in May 2019 (versus the end of 2018) decreased by 1 percentage point to 12.7%. The Agency considers that simultaneously the banking sector of Azerbaijan observes quite high level of dollarization – 59.6% of deposits and 35.0% of loans are denominated in foreign currency. At the same time, thanks to prudential measures, favorable interest rates on deposits in manats and stable exchange rate, the level of dollarization has slightly decreased.