BANK OF BAKU AUDITORS REPORT AND
FINANCIAL STATEMENTS AT
31 DECEMBER 1998
Note 18 - Asset and Liability Concentration
Geographical analysis:
The geographical analysis of assets and liabilities as at 31 December 1998 is
set out below:
OECD countries
Non-OECD countries
Total
Azerbaijan Republic
CIS countries
Assets
Cash and short-term funds
1,647,818
2,913,517
77
4,561,412
Loans and advances to banks
-
58,350
-
58,350
Loans and advances to customers
-
2,678,659
-
2,678,659
Accrued interest income
-
63,231
-
63,231
Other assets
-
2,332
-
2,332
Premises and equipment
-
391,544
-
391,544
Deferred tax asset
-
58,250
-
58,250
Total assets
1,647,818
6,165,883
77
7,813,778
Liabilities
Deposits from banks
-
855,147
-
855,147
Customer accounts
-
857,657
-
857,657
Other liabilities
-
236,721
-
236,721
Total liabilities
-
1,949,525
-
1,949,525
Net position as at 31 December 1998
1,647,818
4,216,358
77
5,864,253
Currency analysis
Currency risk is the risk that the value of a financial
instrument will fluctuate due to changes in foreign exchange rates. At year-end,
the Bank had balances in Azeri Manat and other currencies. Other currencies
represent mainly amounts in US Dollars. At 31 December 1998, the Bank had the
following currency positions:
Manat
Foreign currency
Manat equivalent
Total Manat
Assets
Cash and short-term funds
1,141,491
USD 878,764
3,418,392
4,561,412
DEM 651
1,519
RUR 53
10
3,419,921
Loans and advances to banks
-
USD 15,000
58,350
58,350
Loans and advances to customers
1,446,101
USD 316,853
1,232,558
2,678,659
Accrued interest income
23,031
USD 10,334
40,200
63,231
Other assets
2,332
-
-
2,332
Premises and equipment
391,544
-
-
391,544
Deferred tax asset
58,250
-
-
58,250
Total assets
3,062,749
4,751,029
7,813,778
Liabilities
Deposits from banks
-
USD 219,832
855,147
855,147
Customer accounts
547,926
USD 79,623
309,731
857,657
Other liabilities
120,021
USD 30,000
116,700
236,721
Total liabilities
667,947
1,281,578
1,949,525
Net position as at 31 December 1998
2,394,802
3,469,451
5,864,253
The Bank is required to maintain its foreign currency
position within the guidelines of the NBAR. For the year ended 31 December 1998,
the open currency position limit was 15% of equity as calculated in accordance
with Azeri statutory requirements.
