BAKU, Azerbaijan, June 9. The potential of the
banking sector of the Turkic states is estimated at trillions of
dollars, Executive Director of the Center for Analysis of Economic
Reforms and Communications of Azerbaijan, Vusal Gasimli, saidat the
International Finance and Banking Summit taking place in Baku,
Trend‘s
correspondent reports.
“The Turkic states possess significant untapped potential in the
financial and banking sectors, which could become a key driver of
the region’s economic integration.
The combined GDP of the Organization of Turkic States (OTS)
countries exceeded $2.1 trillion, accounting for approximately 3%
of the global economy. Meanwhile, average economic growth rates
last year exceeded 6%, with individual countries demonstrating
particularly strong growth: Kyrgyzstan over 11%, Uzbekistan over
7%, and Kazakhstan over 5%.
The total volume of banking assets in the region has approached
$1.2 trillion, but their share of the global total is only
approximately 0.8%. This indicates a significant gap between the
region’s economic weight and the level of development of its
financial system.
Last year, savings in the Turkic world countries reached
approximately $670 billion (2.3% of the global total). He estimates
the gap between savings and assets is due to several factors: the
outflow of some capital, underdeveloped domestic financial markets,
and the accumulation of funds in sovereign wealth funds, including
those of Azerbaijan and Kazakhstan.
The goal is to retain more capital within the region and channel
it toward the development of the Turkic countries,” he
emphasized.
Speaking specifically about the participating countries, Gasimli
noted that Türkiye’s banking sector is the most developed: assets
exceed $1 trillion, their ratio to GDP reaches 95%, and capital
adequacy is over 16%. The share of non-performing loans is
approximately 2.6%.
He noted that in Kazakhstan, banking assets have reached $75
billion, while the sector is actively developing through the
introduction of digital technologies.
“In Azerbaijan, the volume of banking assets has approached $35
billion, and the level of problem loans remains one of the lowest
in the region – about 2%,” the analyst explained.
According to him, in Uzbekistan, the rapid growth of the banking
sector and the transition from a centralized model to market
mechanisms continues.
