BAKU: Azerbaijan is poised to introduce new regulations governing credit risk management for non-bank credit and microfinance organizations, as announced by the Central Bank of Azerbaijan (CBA). Togrul Aliyev, the Director General of the CBA, revealed the forthcoming changes during the ‘Innovative Solutions for Sustainable Microfinance’ conference.

According to Trend News Agency, Aliyev stated that the new rules have been developed and discussed with the Association of Non-Banking Financial Organizations and credit organizations, incorporating feedback and suggestions from these entities. The adoption of these rules is anticipated soon, marking a significant step towards enhancing the institutional capacity of microfinance organizations and credit institutions in Azerbaijan.

Aliyev emphasized the importance of strengthening corporate governance requirements and refining outsourcing regulations in banks and credit institutions. He underscored that protecting the rights of financial services consumers will fu
rther inclusiveness and improve risk management across both microfinance institutions and other financial entities. In addressing contemporary challenges, the Central Bank has previously endorsed a roadmap for sustainable finance and recently adopted principles focusing on managing risks associated with climate change, environmental, social, and governance factors. These efforts aim to transfer sustainable finance knowledge and best practices to microfinance and non-bank credit institutions.