Financial Services Report Azerbaijan

  • ID: 2139177
  • June 2014
  • Region: Azerbaijan
  • 19 Pages
  • The Economist Intelligence Unit
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Azerbaijan's banking sector was little affected by the global financial and economic crisis, as the country's commercial banks are not well integrated into global capital markets. Following weak performance in 2012, profitability strengthened steadily in the first three quarters of 2013, with return on equity standing at 14.3% in September 2013.

Despite strong growth and exchange-rate stability, foreign borrowing by Azerbaijani banks is lower than that in Russia and Kazakhstan, countries that are large energy exporters in the Commonwealth of Independent States (CIS). Banks' foreign liabilities were equivalent to 18.5% of total liabilities at the end of the third quarter of 2013. A high perceived risk premium as a result of poor corporate governance may constrain foreign borrowing by banks.

The banking sector had been growing rapidly, albeit from a low base, as the oil-related economic boom drove demand for credit among households and businesses until mid-2008. Nonetheless, the banking sector is still underdeveloped, remains small as a share of GDP and plays only a marginal intermediation role in the economy. A lack of business opportunities in Azerbaijan outside the oil and gas sector will constrain demand for new borrowing over the forecast period.

Industry List: Asset management, Financial Services, Banking, Financial Services, Financial markets and instruments, Financial Services, Financial regulation, Financial Services, Financial Services, Financial Services, Insurance
Industry Codes (NAIC): 52
Industry Codes (SIC): 60

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Financial Services Report Azerbaijan

Financial services report



Asset managers

Financial markets and instruments

Financial regulation
Regulatory watchlist

Monetary and currency policy: Monetary policy

Monetary and currency policy: Exchange rates

Azerbaijan at a glance

Fundamental indicators

Key contacts

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Note: Product cover images may vary from those shown


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