BAKU, Azerbaijan, May 21. Financing through term deposits of individuals and legal entities showed overall growth in the first quarter of 2025, the Central Bank of Azerbaijan (CBA) told Trend.
The bank noted that while there was no change in individuals’ demand deposits, financing through demand deposits of legal entities experienced a decline.
Financial institutions polled anticipate a surge in both
fixed-term and on-demand deposits from individual clients and
corporate entities, alongside a rise in interbank liquidity
provisions in the forthcoming fiscal quarter. The survey indicates
that the strategic objectives of banks regarding market share and
the financing architecture are pivotal determinants impacting the
expansion of deposit volumes.
The participants indicated that the escalation in deposit interest
rates played a pivotal role in the uptick of term and demand
deposits, as well as interbank financing, throughout the initial
quarter of 2025. Nonetheless, financial institutions project that
this ascending trajectory will persist, albeit at a moderated
velocity in the forthcoming period.
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