Azerbaijan banking system

The work of the banking system in Azerbaijan Republic is regulated by the Law “On the Banks”.

According to the legislation, the banking system of the country has two stages- Azerbaijan Republic Central Bank and the credit organizations.

The Central Bank representing the main stage is the central bank of the country and its work is regulated by the Constitution of Azerbaijan Republic, the law “On the Central Bank of Azerbaijan Republic”, Civil Code, and other normative legal acts. In accordance with the law, the Central Bank regulates and licenses the work of the banks an exercises control over the banking operations in the form defined by the legislation.

The second stage of the banking system consists of the credit organizations. The work of credit organizations is regulated by the Constitution of Azerbaijan Republic, the law “On the banks”, Civil Code, the legislations “On the Central Bank of Azerbaijan Republic”, “On the non-bank credit organizations”, and “On the credit unions”, and other normative and legal acts.

The development rate of the bank sector may be defined with the proportion of the total assets to the GDP. The calculations of the experts show that the share of total assets in the GDP is not more than 5% in the economically less developed countries. In Azerbaijan, the share of total assets in the GDP is equal to 32% in the bank sector.

In 2010, the total assets of the banks were equal to 13290.81 million AZN. On average, the assests of one bank was nearly 295.35 million AZN.

The consentration level in the banking system of the country is 60.7%. The total assests of 5 banks (International Bank, Capital Bank, Bank Stardard, Popular Bank, and Pashabank) comprise 60.7% of all the assets. 39.2% of the authorized capital, 61.9% of the deposits, 58.2% of the credit portfolio of the banks belong to these 5 banks in the country.

The only state bank in the banking system is International Bank. 41.6% of the assets belong to this bank. The bank exercises control on 41% of the credit portfolio, 36% of the deposits.

The market share of the remaining 20 banks is less than 5%. The total assets of these banks are 639 million AZN, on average the assets of each bank is equal to 32 million AZN. 8.3% of the credit portfolios and 2.5% of the deposits are in the share of these banks. On average, the credit portfolio of each bank is 38 million AZN and deposit portfolio 6.9 million AZN.

The official sources report that there are 44 bank in the country in April 1, 2011. 1 of them is state, 43 private banks. 22 of the private banks are based on the foreign capital.

№	Banks	Amount of the assets	Amount of the authorized capital	Amount of the deposits	Total amount of the credit portfolio
1.	Azerbaijan International Bank OJSC	5527,917	240,000	1972,780	3760,812
2.	Capital Bank OJSC	781,936	30,000	291,196	508,341
3.	Popular Bank OJSC	650,790	72,828	445,871	494,716
4.	Bank Standard CJSC KB	601,755	75,000	323,601	374,700
5.	Pasha Bank OJSC	509,074	115,407	338,601	194,860
6.	Texnikabank OJSC	506,014	53,685	255,747	364,335
7.	Access Bank CJSC	373,020	41,800	91,189	271,821
8.	Unibank OJSC	354,937	42,027	167,951	237,250
9.	Demirbank OJSC	340,381	20,000	145,828	246,172
10.	Bank of Republic OJSC	257,387	37,459	115,387	157,855

11.	SilkWay Bank OJSC	250,987	32,190	11,565	226,135
12.	AGBank OJSC	249,209	18,557	127,667	193,835
13.	Bank of Baku OJSC	245,126	12,852	153,113	185,322
14.	Zamin Bank OJSC	242,791	20,722	55,661	154,285
15.	AtaBank OJSC	217,854	25,000	143,267	106,159
16.	Mugan Bank OJSC	208,675	20,000	82,358	135,271
17.	YapıKredi Bank Azerbaijan CJSC	206,877	31,611	63,375	69,692
18.	AFB Bank OJSC	183 749 251	42 343 838	7 526 716	130 737 867
19.	Royal Bank OJSC	173,734	22,139	75,485	125,063
20.	Bank of Azerbaijan OJSC	146,861	23,500	66,795	133,916
21.	Expressbank OJSC	135,153	51,000	74,291	49,371
22.	Turanbank OJSC	131,456	20,000	44,195	103,966
23.	Azerbaijan Industry Bank OJSC	129,950	22,114	97,248	72,039
24.	Rabitəbank OJSC	121,821	10,103	102,840	85,447
25.	Bank Nikoil OJSC	178,328	22,500	65,545	149,804

26.	Parabank OJSC	108,638	11,570	63,775	73,418
27.	Kredo Bank OJSC	83,617	15,540	11,139	65,240
28.	Amrahbank OJSC	78,656	14,387	43,754	48,026
29.	Azer-Turk Bank OJSC	61,329	10,991	31,758	30,142
30.	Bank Eurasia OJSC	60,189	20,000	32,657	20,288
31.	Melli İran Bank-Baku	53,519	14,631	4,380	9,946
32.	NBCBank OJSC	47,829	16,071	11,987	42,758
33.	United Credit Bank OJSC	44,880	12,108	16,281	32,660
34.	Deka Bank OJSC	44,043	12,439	17,166	38,642
35.	Gəncəbank SKB	41,808	15,000	3,108	29,202
36.	Atrabank OJSC	39,669	10,425	9,437	28,319
37.	Caucasus Development Bank OJSC	33,514	10,000	3,151	28,780
38.	Gunaybank OJSC	33,028	13,024	7,663	27,990
39.	VTB Azerbaijan OJSC	26,790	23,815	2,918	15,271
40.	BTB Bank OJSC	24,881	12,239	m/y	m/y
41.	National Bank of Pakistan – Baku	11,133	10,163	m/y	m/y
42.	Bank of Union OJSC	m/y	m/y	m/y	m/y
43.	Azerbaijan Bank of Credit OJSC	m/y	m/y	m/y	m/y
44.	Eurobank OJSC	m/y	m/y	m/y	m/y
45.	Nakhchivanbank OJSC	m/y	m/y	m/y	m/y

	On the largest 5 banks:	8071,472	533,235	3372,049	5333,429
	Share in the total figures, %:	60,7	39,2	61,9	58,2

	On the largest 10 banks:	9903,211	728,206	4148,151	6610,862
	Share in the total figures, %:	74,5	53,6	76,1	72,1

	On the largest 25 banks:	12652.15	1087,044	5340,503*	8443,773*
	Share in the total figures, %:	95,2	79,9	98*	92,2*

	TOTAL:	13290,810	1359,438	5448,800	9163,400

* - this indicator does not include the indicators of AFB Bank OJSC.

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