Finance

Home page

Finance

National Bank of Azerbaijan: The high proportion of consumer lending is a result of banksâ€™ lending policies

25 November 2008 14:07 (UTC +04:00)

Baku. Vahab Rzayev - APA-Economics. The structure of assets and liabilities of Azerbaijan-based banks is at the acceptable level, said Rashad Orujov, National Bank of Azerbaijanâ€™s Officer for Lending Institutions.
Loans account for 65-70% of total bank assets in Azerbaijan and consumer loans make up 37% of total lending.
The share of deposits in the liabilities is below 20% in a number of banks.
According to APA-Economics rankings for bank financials during January-September, loans exceed 70% of assets in more than 20 banks and consumer loans exceed 30% of loans in about 20 banks.
Rashad Orujov attributed the high share of consumer loans to the lending policies of banks, as well as the situation in the market.
According to him, a high share of loans in assets can be attributed to greater profitability of these operations compared to other banking operations.
He added that the central bank does not interfere in these processes, may require the implementation of various requirements and the high-level risk management.