BAKU, Azerbaijan, November 29. The overall volume of consumer loans in Azerbaijan fell in the third quarter of this year compared to the previous quarter due to the relaxation of credit requirements, Trend reports via Central Bank of Azerbaijan (CBA).
Citing the CBA's Credit Activity Survey Results, while wage lending criteria remained unchanged, there was a rise in the relaxation of credit card lending standards and a tightening of lending standards for household equipment.
"Albeit banks believe there will be no significant change in consumer credit standards in the fourth quarter of this year, they predict that credit card lending standards will ease and payroll lending standards will soften. Despite a drop from the previous quarter, household demand for consumer credit remains solid. Demand for home appliance loans fell in the third quarter, but demand for credit cards and payroll loans climbed. Banks expect that household demand for consumer loans would increase in the fourth quarter of this year. As a result, banks expect that the population's demand for wage loans will remain constant, but demand for credit cards and loans for the purchase of household equipment would increase," the CBA said.
On September 30, 2023, the loan portfolio of Azerbaijani banks increased by 16.31 percent year on year, reaching 22.2 billion manat ($13 billion).
The share of business loans in the banks' loan portfolio was 54.2 percent (12 billion manat or $7 billion, up 12.04 percent year on year), consumer loans - 29.98 percent (6.6 billion manat or $3.8 billion, up 19.25 percent year on year), and mortgage loans - 15.82 percent (3.5 billion manat or $2 billion, up 26.97 percent year on year).
