Increased liquidity spurs real estate lending
SUPPLEMENT - THE IFLR BANKING GUIDE 2006 - July 01, 2006
Salans
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The banking sector in Azerbaijan has continued along the path of consolidation and expansion. In the first quarter of 2006, banking assets grew by 8.6%. Although Azerbaijan's banks are still minnows by international standards, the level of capital is rising. Banks are required to have capital of Am6 million by July 1 2006, Am8.2 million by January 1 2007 and Am10 million by July 1 2007. Foreign investors, particularly international financial institutions but also private equity funds, have taken, or are seeking, equity positions in several Azerbaijani banks. Add to that the revamped Social Protection Fund, which has introduced personal pension accounts expected to be looking for investment opportunities by 2010, and it is clear that the banking and financial services sector is on the path to growth.
The buoyancy of the banking sector has been helped by the flow of oil money (in May 2006, the first...
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