The Central Bank of the Republic of Azerbaijan has published the results of its Q4 2024 survey on banks’ lending activity and funding sources, showing a tightening in lending policy across business, mortgage and consumer portfolios alongside higher demand in each segment. The quarterly survey, run since Q1 2022, was expanded in this round to include questions on banks’ funding sources. Banks reported an increase in term deposits from individuals and legal entities, and noted higher funding costs for both demand and term deposits amid stronger interbank competition. For the next quarter, respondents expect no change in credit standards for business, consumer and mortgage lending and no change in demand for business and consumer credit, while anticipating higher demand for mortgages. Deposit growth is expected to continue across both term and demand deposits, with deposit funding costs also seen remaining on an upward trend; the central bank noted it monitors sector credit policy developments for prudential policy setting.
Central Bank of the Republic of Azerbaijan 2025-02-28
Central Bank of the Republic of Azerbaijan publishes Q4 2024 survey showing tighter bank credit policies and rising deposit funding costs
The Central Bank of the Republic of Azerbaijan's Q4 2024 survey reveals tightened lending policies across business, mortgage, and consumer portfolios, with increased demand in each segment. Banks reported rising term deposits and higher funding costs due to stronger interbank competition. Expectations for the next quarter include stable credit standards and demand, except for anticipated higher mortgage demand and continued deposit growth.