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 repo 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.
