Taleh Kazimov: Business Lending Requirements Are Not Strict
Central Bank of Azerbaijan Governor Taleh Kazimov said prudential requirements for business lending are softer than international practice, with tightening mainly applying to consumer loans.
Central Bank of Azerbaijan Governor Taleh Kazimov said at a press conference on the monetary policy decision that prudential requirements for business lending are softer compared to international practice. He disagreed with views linking the growth of excess liquidity in the banking sector to the Central Bank tightening lending conditions. According to Kazimov, stricter requirements mainly apply to consumer lending, while conditions for financing small and medium-sized businesses, agriculture, and export-oriented activities are more lenient. He noted that changes taking effect in November include not only tightening measures but also certain easing. The goal of tightening consumer lending requirements is not to reduce lending but to ensure lower-risk lending.
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