Mahmudzada: Azerbaijani banks can direct about AZN20 billion into economy

Azerbaijani banks currently hold free assets worth about 20 billion manats (over $11.76 billion) that can be directed into the economy, Shahin Mahmudzada, Executive Director of the Central Bank of Azerbaijan (CBA), said at the 20th IsDB Global Forum on Islamic Finance in Baku within the framework of the Islamic Development Bank (IsDB) Group's 51st Annual Meeting, Report informs.

Mahmudzada said that the CBA, as a guarantor of stability, can help strengthen confidence in the financial system: "The main issue is how to effectively allocate and use capital. The country has three sources of financial resources: fiscal, private sector, and international finance."

The director added that the share of non-performing loans in the banking sector is less than 3%: "Liquidity exceeds requirements more than twofold, while the capital adequacy ratio stands at around 18%, which is 50% above the standard. Over the past three years, credit growth has outpaced economic growth."