Banks' external liabilities increasing in Azerbaijan

Baku. 9 October. REPORT.AZ/ Total amount of external liabilities of commercial banks operating in Azerbaijan increased by 1,144.9 million manats or 33.7% over the past year, and as of September 1, 2014 amounted to 4,543.4 mln manats.

Report informs referring to the Central Bank of Azerbaijan, since the beginning of this year the volume of external liabilities of banks increased by 403.2 mln manats or 9.7%.

Indicators such as the proportion of banks' external liabilities in the structure of total liabilities taken into account for the evaluation of dependence of the banking system from external factors and the ability to withstand certain external fluctuations.

In Azerbaijan, the figure is 19.3%, which is a small number compared with accepted international practice and relevant rules of certain indicators of developing countries. Obviously, how high is the volume of external liabilities, so high is the dependence on fluctuations in foreign financial markets.