CBA's restrictions increase corporate segment competition

Baku, Azerbaijan, May 8
By Emin Aliyev - Trend:

The change of policy of the Central Bank of Azerbaijan in lending loans increased competition in the corporate segment, chairman of "PASHA Bank" board of directors Farid Akhundov told Trend.

The CBA urged the country's banks to tighten control over consumer loans at the end of 2013. The CBA has sent a letter with instructions to the banks operating in the country to stop lending to borrowers without a workplace reference. 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.

"We have already felt the impact of the CBA's requirements. Along with tighter control over the fulfillment of all the necessary procedures for loans, the CBA has also recommended to actively finance the real sector. As a result, for the time passed since the beginning of the year, the situation in the market has changed - the competition in the SME lending sphere has increased," Akhundov explained.

He went on to add that the same active struggle for customers exists also in the corporate sector, which several banks have actively began working in.

"This is against the background of relatively small number of corporate clients in the market as a whole," Akhundov said.

The corporate client base of "PASHA Bank" increased by 42 percent in 2013 - to 838 enterprises by the end of last year, according to the bank's chief investment director Taleh Kazimov.

"With regards to small and medium businesses, as of 2013, the bank served 486 clients from SME, and loan portfolio in this segment has increased by more than one and a half and reached 75 million manat," he added.

Pasha Bank is a leading corporate bank in Azerbaijan. Founded in 2007, the bank provides a wide range of corporate banking services including lending, operations in the securities market and asset management and treasury services. Some 207 people are working at the Pasha Bank represented by the head office and four branch offices. The bank was declared the Best Investment Bank in Azerbaijan by the Europe Banking Awards 2011.

"Pasha Bank" with authorized capital of 333 million manat remains the most capitalized private bank in Azerbaijan.

Pasha Bank is part of the PASHA group of companies, a major investment holding company in Azerbaijan, which is well represented in sectors such as insurance, construction, building materials production, tourism and other business areas. Kapital Bank, one of the largest banks in Azerbaijani retail market also belongs to the PASHA group of companies.

The official exchange rate on May 8 is 0,7844 AZN / USD.

Translated by S.I.
Edited by S.I.

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