12:35 - 18.10.2022

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October 18, Fineko/abc.az. The level of total concentration of one or several banks in the banking system of Azerbaijan is on the border of low and medium concentration.

ABC.AZ informs with reference to Central Bank's report on financial stability for the 1st half of 2022.

Herfindahl-Hirschman Index (HHI), widely used in international practice to assess concentration, shows a low and medium level of concentration in the domestic banking system.

"It is linked with large number of small and medium-sized banks in this sector. Thus, the shares of the loan portfolio, deposit portfolio and assets in the HHI system are 1015, 1805 and 1576, respectively. This indicates that the loan portfolio sector is at a low level, the assets sector is at an average level (1500>), and the deposit portfolio is at an average level," the report says.