BAKU: Non-bank credit organizations (NBCOs) in Azerbaijan hold a modest 1.6 percent share of the country’s financial system, yet they are witnessing one of the highest growth rates in the sector. This was revealed by Atakhan Hasanov, Deputy Director of the Financial Stability Department at the Central Bank, during a conference on “Innovative Solutions for Sustainable Microfinance” today.

According to Trend News Agency, Hasanov highlighted that the assets of NBCOs surged by 30 percent in the first nine months of this year, reaching approximately 980 million manat. This significant growth in microfinance organizations signals both the potential for further expansion and the necessity for effective risk management strategies.

Despite their limited share, Hasanov stressed that microfinance organizations should not be viewed as a systemic risk within the financial system. However, he pointed out that these entities are particularly vulnerable to various risks, notably financial and credit risks, due to the natur
e of their activities.

The conference underscored the ongoing developments in Azerbaijan’s financial landscape, with NBCOs playing a crucial role in the expansion of microfinance and the broader economic framework.