Consolidation of banks in Azerbaijan to reduce their costs – Fitch

Consolidation of banks in Azerbaijan will make it possible to reduce their administrative expenses, Dmitry Vasiliev, Fitch Ratings director for financial institutions, told reporters.

"Consolidation of banks is necessary so that they can work with lower administrative costs," he said. "Now in average on the market, the ratio of expenses to revenues is 60 percent, which is rather high and indicates a lack of effectiveness of the banking system."

Fitch representative said that in this regard, consolidation will have a positive impact on Azerbaijan's banking market.

Azerbaijani Central Bank has repeatedly stated about the need for the country's banks to merge.

Source: Trend