Financial Crime World

Financial Inclusion in Azerbaijan: Key Indicators

Azerbaijan’s Financial Inclusion Landscape

The country has made significant strides in expanding access to financial services, despite facing challenges. Here are some key indicators that provide insight into the state of financial inclusion:

Microfinance Institutions (MFIs)

  • Number: The number of MFIs in Azerbaijan decreased from 157 in 2015 to 144 in 2016.
  • Assets: The assets of MFIs increased significantly, from 614 million manats in 2015 to 3,897.77 million manats in 2016, mainly due to the International Bank’s purification of toxic assets.

Financial Inclusion Level

Azerbaijan ranked 38 out of 55 countries scored under Microscope 2014, placing it 5th among seven states covered in the report from Eastern Europe and Central Asia.

Account Penetration

  • Rate: The penetration rate of accounts at formal financial institutions in Azerbaijan is lower than that in Armenia and Georgia (29% vs. 48% in Armenia and 61% in Georgia), but higher than the world average for developing economies.
  • Comparison: This indicates a need for further expansion of access to financial services.

Income Level and Financial Inclusion

There is a strong correlation between income level and financial inclusion, with adults from the richest quartile being nearly 17% more financially included than those from the poorest quartile.

Regional Differences

Regional differences exist regarding financial inclusion, commercial bank branches, and domestic credit provided by the financial sector.

Some key statistics mentioned in the text include:

  • Bank Branches: Total number of bank branches per 100,000 inhabitants: about 10.7
  • ATMs: Number of automatic teller machines (ATMs) per 100,000 adults: behind that of its neighbors and the average region.
  • POS Terminals: Number of point-of-sale (POS) terminals in 2016: most are constructed in Baku, although only a quarter of Azerbaijanis live there.

These statistics provide an overview of the status of financial inclusion in Azerbaijan and highlight areas for improvement.