13:00 - 6.04.2023
April 6, Fineko/abc.az. There has been a softening of the terms of business loans in Azerbaijan.
ABC.AZ was informed at the Central Bank that in order to stimulate the role of banks in financing the real sector, taking into account the risks of business loans, softer prudential norms are applied to them compared to other types of loans (for example, consumer loans).
"The reserve rates and risk rates, which directly affect the calculation of the regulatory capital of banks for these types of loans, are set at a lower level. At that, the CBA continues to study regulatory instruments on an ongoing basis based on international best practices in order to encourage banks to finance the real sector of the economy and keeps in mind the possibilities of using these instruments," the CBA says.
