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Azerbaijan's Central Bank reports decline in legal entities’ deposit financing

Economy Materials 21 May 2025 16:16 (UTC +04:00)
Azerbaijan's Central Bank reports decline in legal entities’ deposit financing
Evez Hasanov
Evez Hasanov
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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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