The gap between what Azerbaijani banks pay savers and charge borrowers has widened, with average rates on manat deposits falling while loan rates continue to rise.
By early September 2026, the average annual rate on individuals’ manat-denominated term deposits stood at 9.95%, while the average rate on loans to individuals reached 17.36%, according to calculations based on Central Bank of Azerbaijan data.
The resulting spread was 7.41 percentage points, the highest since November 2021. It was 6.6 percentage points in September 2025, meaning the gap widened by 0.81 percentage points over one year.
Corporate Borrowers Face a Wider Gap
A similar pattern was recorded for companies. The average rate on corporate manat term deposits was 7%, compared with 11.81% on corporate loans. The spread reached 4.81 percentage points, up from 4.24 points a year earlier.
Across the full portfolio of manat term deposits, the average rate fell from 9.44% at the beginning of the year to 9.16%. Over the same period, the average manat lending rate rose from 15.44% to 15.79%.
That pushed the overall spread from 6 percentage points to 6.63 points. An independent calculation published by ABC.AZ reported the same household rates and spreads using Central Bank statistics.
The widening was concentrated in the manat market. Foreign-currency spreads were 1.49 percentage points for individuals and 2.65 points for companies, little changed from 1.51 and 2.67 points a year earlier.
Economist Points to Demand and Concentration
Economist Akram Hasanov told Bizim.Media that weaker economic activity was one factor behind lower deposit yields. Banks attract deposits mainly to finance lending, he said, so they have less reason to compete aggressively for savers when the pool of suitable borrowers shrinks or fewer customers are willing to borrow at high rates.
Hasanov also pointed to greater concentration in the banking market, saying larger banks are gaining more power to set conditions. In his assessment, lower deposit rates allow major banks to attract funding more cheaply and increase income.
Source: Vesti Baku; Central Bank of Azerbaijan.