12:48 - 18.07.2022

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July 18, Fineko/abc.az. "Some non-bank credit organizations in Azerbaijan are operating at a loss that is linked with their gaps in corporate governance, as well as with the loss to banks in competition," ABC.AZ reports, quoting Fuad Isayev, the director of Central Bank’s Department of Credit Institution Activity Monitoring

"Banks' resources for lending are cheaper than those of NBCOs. For example, if banks can draw deposits at an average of 9% per annum, the NBCOs don’t have such a right. Their source of financing is more their own capital. When these funds are not enough, they attract money from the market at an average of 16-18% per annum. Also, the client base of NBCOs, unlike banks, are people with lower solvency. And this actually creates pressure on NBCOs," the CBA official emphasized.