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PEOPLE WITHDRAW DEPOSITS FROM BANKS IN AZERBAIJAN
Today.Az
20 November 2008 [18:45]
As of November 1, the amount of deposits held in banks by individuals
reached AZN 1 784 million, up 22.2% on early this year and up 34.3%
on a year ago, said the National Bank of Azerbaijan.
The amount of deposits declined in October for the first time in
21 months.
The monthly drop was 5% or AZN 94.7 million, about two years after
a 10% or AZN 84.2 million decline in January, 2007.
Although, it is not a bank run, there may be several reasons behind
withdrawals.
First, inflation is too high in Azerbaijan and annual rate reached
about 22% at the end of October. Although money incomes of the
population increased by 35.7% during this period, it is not correct to
guess that the rise in income is equally distributed among the people.
As a result, those who didn't get a rise in their take-home pay or
who can hardly cover the living expenses stopped saving money and
began to use their savings.
The coincidence of the bank withdrawals and global financial crisis
is not accidental.
That is to say, reports about bankruptcy of financial institutions
around the world eroded trust in bank.
Today.Az
20 November 2008 [18:45]
As of November 1, the amount of deposits held in banks by individuals
reached AZN 1 784 million, up 22.2% on early this year and up 34.3%
on a year ago, said the National Bank of Azerbaijan.
The amount of deposits declined in October for the first time in
21 months.
The monthly drop was 5% or AZN 94.7 million, about two years after
a 10% or AZN 84.2 million decline in January, 2007.
Although, it is not a bank run, there may be several reasons behind
withdrawals.
First, inflation is too high in Azerbaijan and annual rate reached
about 22% at the end of October. Although money incomes of the
population increased by 35.7% during this period, it is not correct to
guess that the rise in income is equally distributed among the people.
As a result, those who didn't get a rise in their take-home pay or
who can hardly cover the living expenses stopped saving money and
began to use their savings.
The coincidence of the bank withdrawals and global financial crisis
is not accidental.
That is to say, reports about bankruptcy of financial institutions
around the world eroded trust in bank.