BAKU, Azerbaijan, April 15. The liquidity of the banking sector of Azerbaijan continues to remain in the comfort zone, Trend reports via CBA.
The sector's liquidity position has aligned with the framework of the new monetary policy and prudential instruments.
“All banks have exceeded the required liquidity coverage ratio (LCR) set for both total and foreign currency liquidity. The sector’s instant liquidity ratio stands at 52 percent, exceeding the minimum regulatory threshold by 22 percentage points,” the bank noted.
The CBA emphasized that 27 percent of the sector’s assets consist of liquid funds, including an increase in required reserves. This, it stated, ensures that the sector maintains an adequate buffer against potential liquidity shocks.
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