966
Serial number: 13/2013
Author(s): R. Karimov
Language: Azerbaijani
Date: 2013
Abstract: This article investigates the indicators of financial intermediation, as well as their effect on financial depth. The study analyzes financial intermediary indicators of the banking sector in Azerbaijan and determines the effect of those indicators on financial depth by carrying out an econometric evaluation based on OLS model.
Bank credits in Azerbaijan are found to be 97.5% of the overall credits, whereas the other part is included in non-bank credits. This research considers issues regarding the banks with both foreign and local capital and it shows that loans given by the banks with the foreign capital include 33% of the all available loans and the left 77% belong to the banks with the local capital.
Results let us see that 10% increase in bank credits induce financial depth to amplify by 1.25%, while 10% increase in non-bank credits make financial depth to rise by 0.78%.
Key words: Financial intermediation, financial depth, bank credits
JEL classification: G21, G28
