Review of Banking System of the Republic of Tajikistan
Dynamics of development of banking system
There are 142 credit institutions, including 16 banks (increased for one unit), their 299 branches, 2 non-bank credit institutions and 124 micro-financing institutions (increased for 2 unit) function in the Republic of Tajikistan as of June 30, 2012. For the mentioned period it is observed an increase in quantity of banks due to opening of CJSC “Subsidiary Bank of the National Bank of Pakistan” in Tajikistan.
Also for the reporting period the number of branches of credit institutions has increased and having made 299 units. The given increase has occurred because of opening of 24 branches of the OJSC "Tojiksodirotbank", 1 branch of the OJSC Eshata Bank and 1 branch of the CJSC Accessbank Tajikistan. For this period 1 branch of CJSC Fononbank has been closed.
Five banks – CCUB Ayom, CJSC Somon-Bank, CJSC East-Credit Bank, CJSC Bank Olymp and CJSC CTB-Investbank are under liquidation as previously.
The credit institutions operating in the territory of the Republic of Tajikistan by the type of ownership are divided into:
1.Banks
state banks -1 bank
JSC banks –9 units
foreign banks – 6 units
2. Non-banking credit institutions
JSC -1 unit
CJSC companies-1 unit
3. Micro financing institutions
Micro credit deposit institutions
CJSC - 12 units
LTD companies - 21 units
including
with share of foreign capital – 5 units
Microlending institutions
CJSC – 9 units
LTD companies– 34 units
including
with share of foreign capital – 3 units
Microlending funds
Public – 46 units
Table 1
Data on increase of announced authorized capital of banks
Name of credit institutions
Amount of announced authorized capital
Amount of announced authorized capital
Increase of announced authorized capital
Banks
31.12.2011
30.06.2012
1.OJSC Agroinvestbank
185 000 000
185 000 000
2.OJSC Orienbank
300 000 000
300 000 000
3.SSB RT Amonatbank
24 501 511
4.OJSC Tojiksodirotbank
250 349 800
250 349 800
5.CJSC CCB TICB Tojprombank
4 800 000
4 800 000
6.OJSC Bank Eshata
16 3444 090
16 344 090
7.OJSC Sohibkorbank
20 000 000
20 000 000
8.Tijorat Bank Branch of IRI in Dushanbe city
16 409 725
16 409 725
9.CJSC The First MicroFinance Bank
30 660 000
30 660 000
10.CJSC Tajikistan Development Bank
64 180 000
64 180 000
11.CJSC Fononbank
25 000 000
25 000 000
12.SJSC Kazcommerzbank Tajikistan
34 392 000
34 392 000
13.CJSC Kafolatbank
50 532 000
50 532 000
14.CJSC Accessbank Tajikistan
48 000 000
48 000 000
15.CJSC IB "Kont"
50 000 000
50 000 000
16. "CJSC Subsidiary Bank of NBR in
Tajikistan"
50 000 000
50 000 000
Total:
1 095 667 615
1 170 169 126
50 000 000
The increase in the declared authorized capital has occurred due to opening of the CJSC “Subsidiary Bank of the National Bank of Pakistan” in Tajikistan.
The minimum regulated capital for acting banks has been set at the amount equivalent to TJS 30 000 000 and newly established banks at the amount equivalent to TJS 50 000 000.
The minimum amount of authorized capital for newly founded micro credit deposit institutions from September 1, 2009 has been set for the amount of equivalent to USD 800 000 (eight hundred thousand).
The minimum amount of authorized capital for newly founded microlending institutions has been set for the amount of TJS 1 000 000 (one million) from April 28, 2011.
The Personnel Review Commission of the National Bank of Tajikistan in 2012 held 8 certifications in which 108 executives of credit institutions, their branches and also banking auditors have participated. As a result 83 officials have been certified and 25 attested staff has been recognized as not suitable to their position.
As of June 30, 2012 the amount of foreign capital in the authorized capital of banking system of the republic has made TJS 373 806 275 and increased for TJS 45 145 610 in comparison with January 1, 2012 (TJS 328 660 665).
Total assets of banking system 1.
Total assets of banking system for the reporting period has made TJS 9 522 million and increased for TJS 388 million or to 4,3% in comparison with the end of last year.
Total balance of credit portfolio of banking system for this period has made TJS 4 179 million and in comparison with the end of previous year increased for TJS 296 million or to 7,6%
The amount of classified loans for this period has made TJS 638 million or 14,3% of credit portfolio having increased (TJS 593 million or 12,8% of credit portfolio) actually for TJS 45 million in comparison with the end of last year. Its specific weight in percentage to the credit portfolio also has increased by 1,5%.
Data on quality of the credit portfolio of all banking system are given in the Table 2.
Table 2
Quality of credit portfolio of banking system
(TJS million)
Classification of loans
31.12.2011
30.06.2012
change (+,-)
Total including,
4 631
4 448
-183
Standard
4 038
3 810
-228
Classified
593
638
45
Specific weight of classified
loans of total amount of loans in %
12,8%
14,3%
1,5%
* With corrected operations of JSP «Agroinvetbank»
General liabilities of banking system for the reporting date have made TJS 7 290 million and have increased for TJS 112 millionor 1,6% in comparison with the end of previous year.
Total deposits of banking system for reporting date have made TJS 4 795 million and have increased for TJS 374 million or 8,5% in comparison with the end of previous year.
The total balance capital of banking system has reached TJS 2 232 million and have increased on TJS 276 million or by 14,1% in comparison with the end of previous year. Paid authorized capital of banking system as of June 30, 2012 as a whole has made TJS 1 446 million having increased for TJS 269 million or 22,9% in comparison with the end of previous year.
In the structure of total assets of credit institutions in specific weight have made 50,3%, balance capital – 22,4%, involved funds of credit institutions – 13,7%, centralized funds – 0,9 % and other liabilities – 9,9%.
At the same time in connection with strengthening of requirements to risk management and quality of banking service, a tendency of increase in deposits and expansion of branch network in regions proceeds.
The indicator of return of assets (ROA) of credit institutions for the reporting period has increased from minus 0,42 % to 1,45 %. The main reason of increase of return of assets is increase of income with foreign currency operations and decrease of expenses for formation of Loan Loss Provision.
The basic indicators of banking system show that the structure of assets and liabilities for reporting date has changed. Also the specific weight of loans and investments in part of assets have made 46,7% and 1,8% accordingly. In part of liabilities, deposits have decreased by 4,2%, having made 65,8%.
Indicators of the credit institutions
Credit institutions assets
Assets of credit institutions as of June 30, 2012 have made TJS 8 472 million and in comparison with the end of previous year have increased by TJS 248 million or by 3,0%. The given increase has occurred in view of increase in the cash, due from banks outside of Tajikistan, due from National Bank of Tajikistan, capital assets and other assets.
Credits of credit institutions
The total credit portfolio of credit institutions as of June 30, 2012 has made TJS 3 292 million (net), and in comparison with the end of previous year has decreased of TJS 263 million or by 7,4%. At the same time, it should be noted that on the given data quality of credits of commercial sector has worsened.
Specific weight of classified loans was reduced of 2,4% and as of June 30, 2012 has made TJS 597 million that in comparison with the end of previous year it is increased on TJS 40 million or on 7,2%.
Liabilities of the credit institutions
As of June 30, 2012 liabilities of banks have made TJS 6 573 million and in comparison with the end of previous year have decreased by 1,0%.
Deposits of the credit institutions on the reporting date have made TJS 4 260 million and in comparison with the end of previous year have increased by TJS 98 million or 2,4%.
Capital of the credit institutions
As of June 30, 2012 capital balance of banks has made TJS 1 899 million that in comparison with the end of previous year it is more on 19,9%.
Paid nominal capital of banks as of June 30, 2012 has made TJS 1 113million and in comparison with the end of previous year has increased by 4,7 %.
Profitableness
Return on assets (ROA) as of June 30, 2012 has made 1,45 %.
