Bank Of Baku

Liquidity in Azerbaijan’s banking system reaches extreme limit

Liquidity in Azerbaijan’s banking system reaches extreme limit
# 29 December 2011 10:39 (UTC +04:00)
Central Bank of Azerbaijan says the deposits have risen by 26.4$ since early 2011, 4.2% - in November.

Increase of population’s deposits effects the banks’ liquidity and lending ability positively. However, extension of their resources base by increase of deposits as a result of sharply decrease of banks’ operation in lending gave rise to certain problems. So that, the interest expenditure of banks who has difficulties in placement of involved funds increased more roughly than interest incomes and therefore, fall in YTM of banking system is observed.
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