12:39 - 29.08.2023

---

August 29, Fineko/abc.az. Over the past months of the current year, banks recorded a twofold decline in monthly volume of household deposits.

The first case occurred in February this year  when the decline made AZN 27 million for the first time since August 2021. The decline in household deposits in banks was also recorded last month. As of August 1, the total volume of deposits dropped by AZN 43.3 million compared to the previous month, to AZN 12,705 million manats.

ABC.AZ reports that MP Vugar Bayramov noted in his social network account that the taxation of deposit income in banks since February also affects the volume of deposits.

"Expenses, investments in the real sector and seasonal factors also retain their influence. A wider attraction of savings is also important in terms of financing the real sector and reducing interest rates on loans. In this regard, it is very important to achieve sustainable growth of the savings portfolio. In this sense, it would be more appropriate to amend the Tax Code to introduce a differentiated savings tax credit. We propose that protected deposits be exempt from taxes at the same time. In this case, deposits up to AZN 100,000 can be exempted from 10% income tax, which further stimulates the accumulation of deposits," Bayramov said.