Reduced bank investments in securities

Azerbaijani banks last year invested in securities 1 billion 772.9 million manat.

As stated in the annual report of the Central Bank of Azerbaijan, as of January 1 of this year the total bank investments in securities amounted to 8.7% of all bank assets (previous year was 9.1%).

The highest peak of activity occurred in the fourth quarter, when the investment portfolio in CB "swelled" to 287.3 million manat.

According to the economist Samir Aliyev, activity of the bank investing in securities decreased due to their low annual yield. Most banks are forced to acquire bonds of the Mortgage Fund with profitability of 3%. So it seems more profitable to "get into the pocket" of the population, giving consumer loans at 18-30%, the expert said.

The share of consumer loans in the loan portfolio of banks by July 1 was 40.2%, which confirms the words of Samir Aliyev. - 17D-

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