The banking sector in Azerbaijan is stable despite the general economic situation in the world due to the pandemic, the chairman of the Central Bank of Azerbaijan (CBA), Elman Rustamov, said, answering the question about the need for financial support to the country’s banks, Report informs.

“The banking sector is sound, it has emerged well from the pandemic as a whole. The negative indicators were associated with those banks removed from the system [whose licenses were revoked]. Today, both the adequacy and liquidity of bank capital are twice as high, so we have left only some restrictions in force,” Rustamov replied, referring to the gradual easing of regulatory restrictions introduced amid the coronavirus pandemic.

The growth in the banking sector – business lending, mortgage, and, to a greater extent, consumer lending – shows that the situation is normal here; banks are doing well, Rustamov said.

As of September 1 of this year, the banking sector’s assets in Azerbaijan amounted to AZN 33,426,700,000, an increase of 7.6% from the same period last year.

Net loans issued to customers made AZN 13,981,900,000 manats were net loans issued to clients. Over the past year, the sector’s loan portfolio grew by 7.8%, while the share of loans in assets increased from 41.7% to 41.8%.

During the reporting period, the banking sector’s liabilities increased by 8.6%, up to AZN 28,613,000,000, including the deposit portfolio increased by 16.25%, up to AZN 22,749,700,000. Of these, AZN 8,400,200,000 are deposits of individuals, and AZN 14,439,500,000 are legal entities. Over the year, households’ funds in banks grew by 8.1%, and companies’ funds in banks rose by 21.55%.

The sector’s balance capital increased by 2.1%, amounting to AZN 4,813,700,000.