Azerbaijan, Baku, May 20 / Trend , I.Khalilova /
In 2008, the global economic crisis had limited impact on banking and monetary markets of Azerbaijan, but in 2009 the impact of the crisis increased, said the Acting Director General of the Central Bank of Azerbaijan (CBA) Khagani Abdullayev said.
"Since 2007 after the banking crisis in Kazakhstan, the CBA has begun to actively conduct pursued preventive macro-prudential policies, formed the design of monetary instruments, Abdullayev said. - Since then, we have begun to implement these tools through preventive measures for possible dangers".
In 2008, the banking sector continued to remain active in the credit market and increased the deposit base, but since 2009 we have felt the impact of global crisis, a more vivid vision in the banking sector is linked to its integration into the global financial system".
"Since October, the Azerbaijani banks have sent around $1 billion to the repayment of external loans that influenced their resource base and the overall lending activity," said Abdullayev.
Despite this, the Central Bank mitigated the tools of monetary policy, interest rate reduced from 15 to three percent, and today we consider the next steps. "The main focus of monetary policy is to expand the channels of liquidity in the economy, and the calculations showed that from the reduction of compulsory reserve standards and mitigation of other channels since October, we returned to the banking sector liquidity of over $900 million," he said.
"It has allowed to compensate the liquidity drawn from the world financial market," said the acting director.
According to him, global processes have led to a decline in lending in the Azerbaijani economy over the past four months. But, according to the calculations, without an increase in liquidity in the credit portfolio, the banking sector would experience a significant decline. As a result, the corresponding macro-prudential regulatory policies in the loan portfolio of Azerbaijani banks do not have a serious deterioration. In general, the share of overdue loans in total loan portfolio of banks is about three to four percent.
In the first months of 2009, a 6-7 percent decline was also recorded in the portfolio of deposits in the banks, but since April the situation has improved.
"The portfolio of deposits has been gradually recovering, the portfolio, which in the first quarter declined significantly, increased," said Abdullayev.