CBA: Azerbaijani banks can direct additional $2.9B to real sector

Azerbaijani banks can direct additional 5 billion manat ($2.9 billion) to the real sector, Fuad Isayev, Director of the Credit Institutions Supervision Department of the Central Bank of Azerbaijan (CBA), said at the II Agribusiness Forum held in Baku.

According to Isayev, the volume of term deposits is 9 billion manats ($5.3 billion), of which 6.4 billion manats ($3.8 billion) belong to individuals and 80% are set for a year or less.

The CBA official added that currently the liquidity ratio in banks is 60%, twice more than the minimum requirement of 30%:

"If we take into account the quick liquidity ratio of 30% and apply 10% as an additional buffer, then the banks have additional resources of 5 billion manats, which they can direct to the real sector."