Vusal Gasimli: Central Bank's discount rate increase should not affect growth of loan interests

24.11.2022,12:55


November 24, Fineko/abc.az. The increase in the discount rate by the Central Bank should not affect the increase in interest rates on loans by banks.

ABC.AZ reports that Vusal Gasimli, executive director of the Center for Analysis of Economic Reforms & Communications (CAERC), said this, when delivering speech at the VI International Banking Forum in Baku.

He noted that the CBA's accounting policy is aimed at curbing inflation.

The executive director believes that inflation will generally decrease next year:

"In this case, loans given by banks will be repaid during periods of lower inflation. Banks should take this into account in interests of loans."

He added that in the banking sector, which makes up a significant part of the financial sector, the level of capitalization and liquidity exceeds the norm by up to 2 times:

"Over the past 10 years, the share of banking assets in the country's GDP has grown from 26.8% to 44.3%. Credit investments in the economy increased by AZN 9.9 bn and reached AZN 17.1 bn," he said.