The number of banks will continue to drastically decrease in Azerbaijan, Moody’s Investors Service Vice President Maria Malyukova told
APA.
Malyukova says Azerbaijani banks are still struggling to get back on their feet after the recent currency devaluations in 2015 and 2016.
“Taking into account the difficult economic situation and the remaining risks in the banking sector, in particular the volatility of the exchange rate, lack of profitability in the investment sector and lack of hard capital, the prognosis for the economic sector remains negative”.
International rating agency Fitch says that in 2017 there will be massive reductions in the work force in the banking sector, many of which may even extend to bankruptcy.
In January of this year, the president harshly
criticized
bankers and banking institutions. Since the two devaluations of 2015 and 2016, 13 banks have closed, leaving 32 operating banks in the country. More than 4200 workers in the banking sector have lost their jobs since the beginning of 2017.
