What is happening in the Banking Sector in Azerbaijan?

What is happening in the Banking Sector in Azerbaijan?

After closing the year of 2013 with a credit boom, the banking sector was unable to withstand the cold months of the current year: commercial banks almost halted all personal lines of credit. Despite the optimistic view of the Central Bank of Azerbaijan Republic regarding the general situation, the commercial banks have remained skeptical. After imposing loan restrictions, some of the banks even made a decision to close their operating branches. Certainly, it is not difficult to assess the situation: 73.5 per cent of all outstanding banking assets (20.4 billion AZN) with a total amount of 15.0 billion AZN are loans and this consequently has a restrictive impact on banking. An inability or unwillingness to lend makes it virtually impossible to run the main bank activities. As a result, this has a detrimental impact on the primary income of banks. The Banks involved in retail banking will suffer more if the status not going to be changed within a short period.

Download Full CESD Article on Banking Sector in Azerbaijan Here

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