Banking & Finance

Currently, there are 30 banks in Azerbaijan including two state -owned banks. Regulatory structure of financial system consists of 3 main bodies: CBAR, Financial Market Supervisory Authority (FIMSA) and the Council of Financial Stability. CBAR is the regulator of monetary policy in the country and regulation of banking and payment systems. Azerbaijan is one of the financial markets which are most open to the innovations. International credit ratings agency Moody’s also upgraded the outlook of Azerbaijan’s banking system from stable to positive, Moody’s expects the profits of the Azerbaijani banking sector to grow, adding that credit costs are expected to decline, while liquidity has improved due to the dollarization of liabilities through governmental support.

Unfortunately, the banks are yet to overcome one of the banking sector’s main problem which is continuing growth in overdue loans. Certain measures taken by banks have not yielded particular results. However, the fact that the government takes comprehensive measures to fight against the growth of problem loans gives some hopes that the condition of banks and their customers will improve in 2020.

To withdraw cash from their bank accounts entrepreneurs must pay tax at a rate of one percent of the withdrawal amount. All these measures resulted in an increase in funds in bank accounts of, primarily; entrepreneurs and banks received additional funds for the issuance of loans.