Azerbaijan-based banks see interest spread drop

Azerbaijan-based banks see interest spread drop
# 07 May 2009 12:28 (UTC +04:00)
Baku. Vahab Rzayev– APA-Economics. As of April 1, the interest spread for Azerbaijan-based banks stood at 5.8%, down 1 percentage point from a year ago and 0.8 percentage points from early this year.

The Central Bank of Azerbaijan said the interest spread was 6.6% at the end of 2008, 5.4% at the end of 2007 and 6.1% in 2006.

Interest spread is the difference between the average lending rate and the average borrowing rate for a bank or other financial institution (Interest income ÷ interest earning assets) - (interest expense ÷ interest bearing liabilities).


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