Banks are pushing consumers to "debt hole"

The growth rate of the number of credits in Azerbaijan exceeds the rate of increase in the number of borrowers. That is, re-lending  of customers in several banks, which could lead to a "debt hole" is observed.

According to the Central Bank of Azerbaijan,  for  July 1, the Central Credit Register (CCR) contains information on 2,138,886 borrowers (+9.5% YTD), and about 7,738,882 credits (+ 18.6%).

From the beginning, the number of requests in the CCR was 1 million 421.31 thousand, which is  by 1.43 times higher than  over the same period last year. According to the Central Bank of Azerbaijan (CBA), the most in the administration requests (1 million 398 thousand 83 times) were noted  the banks and non-bank credit institutions (NBCO.) The rest of the pie fell on individuals – 23, 227 requests for information on their credit reports. Overall, in the first half of 2014 benefited from the registry data  used 41 bank and 31 NBCO.

 For the beginning of  July this year the registry contains information about 989, 278 loan guarantees (+18.2% since the beginning of the year.)

 The CCR  of the CBA   has been operating since 2005. It's designed  for getting information by  banks  about current and potential borrowers, as well as regulating the market borrowers. The CCR began to operate in the new format in September 2009. - 17D-