Expert: Everyone is afraid to keep money at bank because of pandemic


April 12, Fineko/abc.az. The banking sector, like the economy as a whole, depends on how the pandemic, the quarantine, continues, ABC.AZ was stated by Azerbaijan's banking sector expert Ekrem Hasanov.

He noted that last year the banking sector was operating at a significant loss not only in Azerbaijan, but also around the world.

The expert told about the causes of that: "On the one hand, the population withdrew their savings from banks due to unemployment, a factor of declining incomes. In such times of crisis, everyone is afraid to keep money in the bank, preferring to leave it at home. Unfortunately, Azerbaijan also saw a decline in bank deposits last year. Secondly, problem loans have increased. And this is understandable: a pandemic. Both the population and entrepreneurs are experiencing difficulties in repaying their loans. This is, of course, very bad for the banking sector. Along with this, deposits in banks have also decreased. On the other hand, the loans they give are not repaid on time and in full. From this angle, the last year ended problematic for the banking sector as a whole."

By Elmir Murad