Commercial banks operating in Azerbaijan were instructed by the Central Bank of Azerbaijan (CBA) to terminate advertising of consumer credit products, a senior source in the Azerbaijani banking market told Trend Aug. 22.
The call with the corresponding requirement was made to the Bank last week, and now the bank is going to focus on advertising in crediting of small and medium-sized businesses.
He said that an indication of the CBA does not cause significant problems, since the bank already has a sufficient customer base. "But the new players in the market will have a very hard time," said the source.
The representative of another Azerbaijani Bank reported that he is aware of such a ban, but he declined to give details, citing the lack of information.
In its turn, the press service of one of the largest retail banks in Azerbaijan categorically denied such directive from the CBA.
Such decision of a regulator is a response to the comments made by the President of Azerbaijan Ilham Aliyev during the last meeting of the Cabinet of Ministers dedicated to the socio-economic development of the country. In his closing speech, the President said that the commercial banks in the country need to actively credit the real sector and to support economic development, and not to content with consumer loans.
There are 44 banks in Azerbaijan.