Central Bank publishes results of Credit Conditions and Financing Sources Survey for Q1 2025

21-05-2025

21 May 2025, Baku: The Central Bank has published the results of its survey on credit conditions and sources of financing in the banking sector for the first quarter of 2025.

According to the survey results, there was no change in banks' lending policies for business and mortgage loans in the first quarter of 2025. However, standards for consumer loans tightened. Banks reported no change in demand for business and consumer loans but an increase in demand for mortgage loans. The survey indicates that banks do not expect changes in standards for business and mortgage loans in the second quarter of 2025,  however, they anticipate that the tightening trend for consumer loans will continue. Banks expect no changes in demand for mortgage and consumer loans in the next quarter, and an increase in demand for business loans. According to banks' responses, an increase in the sources of financing was observed for term deposits of individuals and legal entities. Respondents believe that positive dynamics will continue in this direction in the next quarter. The report notes, based on the survey results, that in the conditions of increased competition between banks, an increase in the cost of financing was observed for demand and term deposits of individuals and legal entities. Banks believe that the same trend will continue in the next quarter.

It should be noted that the Central Bank constantly monitors changes in the sector's lending and financing activities and determines appropriate prudential policy.