Central bank to ban banks' formalising retail consumer loans - source
Azerbaijani banks will suspend formalising consumer loans in retail trade outlets, a source from the banking sector told Trend news agency on Monday.
Now many banks have been working with outlets selling cars, furniture, electrical equipment and mobile phones by giving out loans on the spot. The banks opened their units in trade networks where the loans were formalised, to accelerate and simplify the lending process.
However, the Azerbaijani Central Bank (CBA) has sent a letter to the commercial banks with a request to cease issuing consumer loans at retail trade outlets and to deliver them centrally and directly in the banks.
This decision is explained by the increase in the volume of consumer loans which were not repaid.
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