Exclusive statement of an expert: Work on sustainable development of banking sector should be continued


August 15, Fineko/abc.az. The results of the 1st half of 2019 show that the Azerbaijani banking sector is experiencing comparative development, says expert economist Vuqar Bayramli in an interview for website ABC.AZ in his exclusive statement on the assessment of the banking sector of the country.

He added that this is manifested in the growth of the loan portfolio in the banking sector and the reduction of the number of problem loans.

The expert believes that, despite changes in assets in the banking sector, the reforms in this direction should be continued: "The results of the half-year have shown that a lot of measures are being taken in the banking sector. But, on the one hand, even if there is a decrease in the volume of problem loans, this is again a two-digit limit. At the same time, despite the growth of the loan portfolio, the growth occurs due to the expansion of consumer loan. Consumer loans in Azerbaijan make up 43% of the loan portfolio.

“In particular, it should be taken into account that there was a decrease in the volume of loans directed to the real sector. In combination with the agriculture, industrial and processing sector, it does not account for 10% of the total loan portfolio and is in the limit of one-digit indicator. 9.5% is directed for this sphere. However, this suggests that the trend is generally positive. But it is important to continue reforms in banks, as credit structures, and in reducing the volume of toxic assets, asset placement. It is necessary to accelerate work in this direction. And, as a result, the expansion of activities in this direction is very important for the sustainable development of the banking sector."