BAKU, Azerbaijan, Dec. 29
By Zeyni Jafarov - Trend:
In 2020, Azerbaijan took radical steps to rehabilitate the banking sector and 4 banks that had lost their financial stability were removed from the system, Trend reports citing the Central Bank of Azerbaijan (CBA).
The issuance of compensations to all four banks is mainly ensured, more than 24,000 depositors received deposits worth 615 million manat ($361.7 million).
“Due to the coronavirus pandemic, the situation in the real sector has become the main factor affecting the dynamics of credit investments. In order to support the access of business entities to financial resources, the CBA has established an active basis for cooperation with representatives of the banking community and entrepreneurs,” reads the CBA message.
“Excluding closed banks, mortgage loans in the banking sector of Azerbaijan for the first 11 months of this year increased by 11.9 percent, business loans by 1 percent, and consumer loans decreased by 4.5 percent. Since early 2020, bank lending to the industry increased by 43.3 percent, and its share in the business portfolio went up from 18.4 to 26.1 percent. Moreover, construction lending, which has a high multiplier effect, rose by 9.1 percent over 11 months of this year, and its share in the portfolio reached 11.9 percent,” the message said.
The bank deposits of the population from the main sources of banks, excluding closed banks, have not changed since the beginning of 2020 and stood at 7.8 billion manat ($4.58 billion).
(1 USD = 1.7 AZN on Dec. 29)
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