Axar.az
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25 November 2017


ADB welcomes consolidation process

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The government’s decision to close inadequately capitalized banks and to encourage bank consolidation could strengthen the banking system by simultaneously raising capitalization and reducing costs, thereby enabling narrower spreads between deposit and lending rates.

The bank says if the emergence of several stronger and more effective banks ensues, the sector could become more competitive: “Steps to reduce the government’s presence in the sector could also help if implemented in a way that augments rather than inhibits competition”.

Date
2016.03.30 / 14:14
Author
Axar.az
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