Bank merger is a reasonable process - Expert


September 13, Fineko/abc.az. Bad loans at banks are also caused by high interest rates. The credit interest offered by commercial banks in Azerbaijan was never expressed in a single digit. In many cases, this figure is not only higher than 10%, but even close to 20-25% and continues to remain at that level, Abc.az reports citing expert economist Perviz Heydarov, who commented on the issue of the possibility of improving the banking sector in Azerbaijan and the merger of small banks.

According to him, difficulties with the repayment of borrowed funds have always existed, and their number grew with the worsening economic situation.

“During the crisis period, 11 banks were closed. The International Bank would also close, but the state and the authorities did not allow this - debt obligations to foreign financial institutions, etc. were fulfilled. The question arises: did you see the merger of any banks in that period? No. This did not happen because we do not have this “culture”. Bank mergers are actually a more profitable and targeted process than closing them down. This is a matter of sharing responsibility and trust. Unfortunately, such elements did not appear even in the most difficult time for banks, and in reality, I believe that it cannot manifest itself at all. So the current state of the banking sector is relatively satisfactory, that is, if viewed as “separated from the artificial respiration apparatus”, I do not expect a merger to occur. Although we have many banks in need of this, ”said the expert.

Posted by Elmir Murad.