Baku, Azerbaijan, Dec.26
By Emin Aliyev - Trend:
The Central Bank of Azerbaijan intends to develop new crediting instruments based on advanced standards to reduce interest rates on loans, the CBA statement on the main directions of monetary policy and financial stability in 2014 said on Dec.25.
"The work on influencing the factors affecting the cost of financial resources will continue in order to reduce the rates. Among the activities for the next year there is also the promotion of competition in the banking sector, improvement of the effectiveness of operations management in banks, the development of other segments of the financial market and the increase of resources of the population and economic subjects sent to the banking sector," according to the statement.
These measures are aimed at expansion of the banks' resource base and improvement of economic and financial conditions for reducing the rates on loan on the basis of the effective management of this resource base, according to the CBA statement.
"Additionally, a new mechanism will be formed for improving the market infrastructure aimed at decreasing the interest rates and redistribution of surplus liquid resources between banks," the CBA statement said.
The activity of regional networks of financial institutions, including non-bank credit organizations and microfinance institutions will be stimulated next year in order to increase the opportunities for regions' access to financial resource.
The assets of the country's banks increased by 22 percent and the credit portfolio - by 25 percent in January-November 2013. The volume of loans sent to regions increased by 31 percent. The crediting of the private sector has increased by a quarter during the reporting period.
Long-term loans constitute the major part in the structure of the credit portfolio (their specific weight has increased to 79 percent). In addition, increase of demand for consumer loans has been fixed: their volume increased by almost 37 percent in January-November.
Some 43 banks operate in Azerbaijan.
Translated by L.Z.
Edited by C.N.