Azerbaijan, Baku, Feb. 16/ Trend U. Ismayilova/
Azerbaijani banks should improve regulations of providing mortgage credits, Aliya Azimova, head of the International Finance Corporation's Baku office said to conference "Mortgage and Insurance: international practice and experience of Azerbaijan" on Feb. 16.
"The International Finance Corporation thinks that banks should thoroughly examine borrower's sources of income to reduce risk of both borrower and creditors during financial crisis," Azimova said.
Azerbaijani banks should strengthen actions on estimation activity and operate in accordance with the international standards in such a situation, she said. Moreover, presently price-cutting for real estate is observed due to financial crisis.
Banks should strengthen actions to diversify insurance portfolio, Azimova said. It is known that many banks insure mortgage credits at chosen insurance companies, as well as those who enter the same holdings that increase risk.
"Banks should conduct domestic procedures more correctly (on granting of loan), as well as insurance in this sphere must be more independent," Azimova said.
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