Baku, Azerbaijan, April 21
By Emin Aliyev - Trend:
The restriction of consumer lending in Azerbaijan will have a positive impact on the country's banks in the long term, the director of retail banking services of "Unibank" Khalid Ahadov told Trend.
At the end of the last year, the Central Bank of Azerbaijan (CBA) demanded the country's banks to tighten control over the consumer loans.
The CBA sent a letter to the banks with instructions to stop giving out credits to borrowers without a proper certificate of employment.
"Furthermore, lending conditions for buying a car have also been tightened, which is due to the deterioration of the banking sector's portfolio for this type of lending," Ahadov said.
"The retail market, including that in the banking industry, has already been developing in our country for the second straight decade. Surely, with the development of the country as a whole and the various spheres in particular, the rules in the market should change," he noted.
I think that the measures taken by the Central Bank will have a positive impact on the banking sector in the long term, he said.
"Naturally, these measures have also contributed to the decline of the demand, however our bank tries to "squeeze" the maximum so to speak, out of the new conditions that we're working in," Ahadov said.
He went on to add that the bank expands the range of services, and builds up the rate of activity in the regions.
"We diversify business, not only from a geographical point of view, but it is also an industry diversification.
With regard to the regions, by the end of the year we plan to open branches in Khachmaz and Sheki - they will become the 37th and 38th branches of Unibank," he added.
As of March 31, the bank's loan portfolio amounted to 617.37 million manat, 76 percent of which accounted for loans issued to individuals. Herewith, 74 percent (454.431 million manat) of the portfolio is accounted for Baku.
The loan portfolio of the bank increased by 41.6 percent compared to the same period in 2013.
Unibank was established on October 15, 2002 as a result of the merge of two private commercial Azerbaijani banks, Mbank and Promtechbank.
Unibank is a universal financial and credit institution rendering retail and corporate services.
The official exchange rate on April 21 is 0,7843 AZN / USD.
Translated by S.I.
Edited by S.I.