BAKU, Azerbaijan, April 15. The liquidity position of Azerbaijan's banking sector aligned with the new monetary framework and prudential tools last year, said Shahin Mahmudzade, Director General of the Central Bank of Azerbaijan (CBA), Trend reports.
Speaking at a press conference on financial stability, Mahmudzade noted that in the previous fiscal year, the liquidity coverage ratio (LCR) was recorded at 150 percent for total assets and an impressive 178 percent for foreign currency holdings, respectively.
According to him, by the end of 2024, the expected total cash inflows in the banking sector would be 4.8 billion manat ($2.8 billion), while expected total cash outflows would be 12.5 billion manat ($7.3 billion), resulting in net cash outflows of 7.7 billion manat ($4.5 billion).
"The banking sector's high-quality liquid assets will exceed the total net cash outflows, amounting to 12 billion manat ($7 billion). The liquidity coverage ratio ensures an adequate level of high-quality liquid assets, enhancing banks' resilience to short-term liquidity shocks," Mahmudzade said.
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