CBA To Introduce New Credit Risk Management Regulations For Non-Bank And Microfinance Organizations
Date
10/23/2024 5:15:41 AM
(MENAFN- AzerNews)
Nazrin Abdul
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New regulations on credit risk management for non-bank credit
and microfinance organizations in Azerbaijan are set to be adopted
soon.
Togrul Aliyev, Director General of the Central bank of
Azerbaijan (CBA), announced this at the Microfinance Conference
focused on "Innovative Solutions for Sustainable Microfinance,"
held in Baku, Azernews reports.
"New rules for credit risk management have been developed for
specific credit institutions. These documents were discussed with
the Association of Non-Bank Financial Institutions, and we received
valuable feedback from various credit institutions. We expect these
documents to be approved soon," he stated.
Aliyev emphasized that one of the main priorities is to
strengthen the institutional capacity of microfinance and credit
institutions.
"In this context, we are enhancing corporate governance
standards and improving outsourcing regulations for banks and
credit institutions. I want to highlight that our initiatives aimed
at protecting the rights of financial services consumers will help
foster inclusion and enhance risk management in microfinance
institutions and other financial organizations.
Considering current challenges, it's important to note that the
Central Bank approved a roadmap for sustainable financing last year
and adopted principles of sustainable financing this year. These
principles focus on managing risks related to climate change, as
well as environmental, social, and governance factors, which are
particularly relevant for microfinance organizations and non-bank
credit institutions. Our goal is to equip these organizations with
sustainable financing expertise and best practices," Aliyev
concluded.
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