BAKU, Azerbaijan, October 1. The stability of Azerbaijan's financial sector has significantly strengthened in the first half of the year, Director General of the Central Bank of Azerbaijan (CBA) Shahin Mahmudzade said at a presentation of the financial stability report for the first half of 2024, Trend reports.
"In the first half of this year, the stability of Azerbaijan's financial sector has been further reinforced. The banking sector sustained its significant role during the reporting period, representing a considerable share of the overall financial sector," he noted.
Mahmudzade noted that the majority of business loans during the first half of 2024 were allocated to companies in the trade, industry, and information sectors.
"In the first six months of this year, the business portfolio increased by 1.26 billion manat ($741 million), which is 10 percent. The main drivers of growth were trade, industry, and information and communication," he explained.
The General Director also addressed the recent exit of some insurance companies from the mandatory auto liability insurance market, stating that the CBA is unconcerned by these developments.
"CBA is unconcerned by which insurance company leaves the OSAGO market. What matters is that those providing mandatory auto insurance can also offer CASCO. Insurers should not rely solely on OSAGO for their financial stability and should actively develop voluntary insurance options. Leaving the insurance company is its commercial solution. If the company considers that this type of insurance is unprofitable, it will leave the market," he noted.
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