28 February 2025, Baku: The Central Bank's survey on credit conditions and sources of financing in the banking sector for the fourth quarter of 2024 has been published. The survey, which has been conducted since the first quarter of 2022, was further improved in the current quarter. Thus, in addition to credit activity, questions on banks' sources of financing were added to the survey.

According to the survey results, banks' credit policies tightened in the fourth quarter of 2024, and demand increased across business, mortgage, and consumer portfolios. According to the survey, banks expect no change in credit standards for business, consumer, and mortgage loans, as well as demand for business and consumer loans next quarter. However, respondents expect demand for mortgage loans to increase. In terms of sources of financing, banks reported an increase in time deposits from individuals and legal entities. Respondents expect time and demand deposits of individuals and legal entities to increase in the next quarter. According to the results of the survey, an increase in the cost of financing for term and demand deposits of individuals and legal entities has been observed due to increased competition among banks. Banks expect this trend to continue in the next quarter.

It should be noted that the Central Bank is constantly monitoring the changes in credit policies of the sector and establishing appropriate prudential policies.