BAKU, Azerbaijan, October 29. Azerbaijan’s banking sector continues to have excess liquidity of 6.2 billion manat (around $3.6 billion), taking into account reserve requirements, Governor of the Central Bank of Azerbaijan (CBA) Taleh Kazimov said, Trend's correspondent reports from the event.
He made the remarks at a press conference on Thursday following a meeting on the parameters of the interest rate corridor.
After meeting all applicable requirements, banks have 4.6 billion manat ($2.7 billion) in available funds that can be used for lending.
According to him, the CBA sterilizes excess liquidity in the banking sector using instruments within its monetary policy operational framework. One-week deposit operations are the main tool used for this purpose.
“There is a substantial amount of liquidity in the banking sector. After accounting for reserve requirements and other liquidity-related requirements, banks currently have 4.6 billion manat ($2.7 billion) in available funds that they can use for lending,” Kazimov said.
The CBA governor noted that the situation involving excess liquidity in the banking sector has persisted since the fourth quarter of last year.
