For almost two weeks, the world community has been focused on the banking crises in the US and Europe.

The global financial sector lost $465 billion due to the bankruptcy of US banks Silicon Valley and Signature Bank. As a result, the financial position of the leading Swiss bank Credit Suisse also deteriorated, and the credit institution was acquired by the largest bank in the country – UBS.

Will the global banking crisis affect Azerbaijani banks? Report has interviewed financial experts.

Expert Khalid Karimli says that the impact of global banking crises on Azerbaijan depends on how the situation develops: “The central banks of the US and Europe have announced that their financial systems are strong enough, the financial sector has no liquidity problems, so they will be able to solve their problems After the crisis in the US, the sector received support from outside. Deposits up to $250,000 were previously insured, but the US government has abolished the limit. It promised to reimburse even uninsured amounts in start-up checking accounts. But this does not apply to all banks. The government can help one or two banks. Naturally, if the process continues, serious problems will arise. If the financial sector does not collapse, this crisis will not affect Azerbaijan’s banking sector.”

According to the expert, assessing the possible consequences of banking crises for Azerbaijan, it is safe to conclude what awaits local banks and the country’s economy as a whole: “In recent years, we have observed the negative consequences of a serious increase in interest rates by central banks around the world. In particular, if the banking sector collapses in the US and Europe, legal entities and individuals will lose their money. This will also lead to the bankruptcy of many companies, a sharp drop in commodity prices. Goods are the main source of the Azerbaijani economy, our country’s exports, and investments in our country.”