Expert: Azerbaijani banking sector’s development rates need to be controlled
Azerbaijan, Baku, Oct. 1 /Trend E. Aliyev/
The rate of development of the banking sector in Azerbaijan should be controlled, Executive Director of Unibank JSC Jalal Gasimov told Trend.
"At first glance, the banks are interested in reducing regulation - but this view is focused on a very short term perspective. If the market is not regulated, then it will go out of control. Banking in all countries of the world is regulated, and consumer loans are one of the constituent parts of it," Gasimov said.
According to him, on one hand, the lack of regulation can cause even more growth in lending.
"The macroeconomic situation is in good condition, the population is confident in the future, and this confidence is increasing expenditures. The more banks that are in the consumer lending segment, the better they will be for everyone - for both banks and consumers," Gasimov said.
He went on to add that the competition factor influences the development - but in the end the greatest success will be achieved by someone who will better and informatively manage.
"On the other hand, if the banks follow this tendency and force demand for goods and services, there will be unmanageable risks. With the increase of demand, interest in this segment will also increase; it will include the banks, without sufficient experience, expertise and management skills in the consumer credit sphere. In case of failure, these banks may adversely affect the entire banking sector of Azerbaijan," Unibank's Executive Director said.
Therefore naturally, there should be regulation - and it should be tight enough to allow the development and control the rates of this development, Gasimov said.