Banks` retail deposits observe decline - cause


February 28, Fineko/abc.az. The volume of population’s deposits at banks has been published.

ABC.AZ reports that according to the Central Bank, in January 2020 the population's deposits at banks decreased by AZN 49.4 million. Thus, over the past three months the reduction in deposits of the population reached AZN 222.6 million. According to the Central Bank, since 1 February 2020 population’s deposits amounted to AZN 8.588 bn. This figure amounted to AZN 8.637 bn since 1 January 2020.

As of 1 November 2019 population's deposits reached AZN 8.8 bn. In November the deposits fell by AZN 129.6 million to AZN 8.68 bn by 1 December and in December by AZN 43.6 million to AZN 8.637 bn by 1 January 2020.

A range of country’s banks currently have an excess of liquidity. Due to the fact that banks can not sell the funds raised in the form of a loan, they are not interested in accepting deposits. Decrease of interests reduces the interest of the population in bank deposits.