BAKU, Azerbaijan, May 21. Lending standards for consumer loans in Azerbaijan, including credit cards, continued to tighten in the first quarter of the year, the Central Bank of Azerbaijan (CBA) told Trend.
The CBA reported that the tightening in consumer lending standards was primarily driven by increases in loan costs and service fees.
Survey respondents projected that stricter conditions for both general consumer loans and credit card lending would remain in place through the next quarter.
Despite these changes in standards, the survey found no significant shift in overall demand for consumer loans or credit cards. However, banks anticipate an increase in demand for general consumer loans in the coming quarter, while expecting demand for credit cards to remain steady.
The CBA also noted that factors such as rising funding costs, capital positions, and expectations regarding household repayment capacity have contributed to the tightening of credit conditions.
Overall, the central bank expects growth in banks’ consumer loan portfolios to continue in the next quarter.
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