The prudential requirements of the Central Bank of Azerbaijan (CBA) for business lending are relatively lenient compared to international practices, CBA Governor Taleh Kazimov said at a press conference dedicated to the monetary policy decision, APA-Economics reports.
He noted that he disagrees with claims that the increase in excess liquidity in the banking sector is related to the Central Bank tightening lending conditions.
According to Taleh Kazimov, stricter requirements mainly apply to consumer lending. Requirements for financing businesses, particularly small and medium-sized enterprises, agriculture, and export-oriented activities, are more lenient.
He emphasized that the changes set to take effect in November do not consist solely of tightening measures but also provide for certain easing measures. The purpose of tightening requirements for consumer loans is not to reduce lending but to ensure lower-risk lending.
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