BAKU, Azerbaijan, October 23. The Central Bank of Azerbaijan is currently working on updating prudential regulations for non-bank credit organizations, the Director General of the Central Bank of Azerbaijan Togrul Aliyev said during the conference “Innovative Solutions for Sustainable Microfinance" held in Baku today, Trend reports.
“The formation of the microfinance model envisages the creation of opportunities to provide additional financial services to institutions operating in this sector, as well as increasing their competitiveness. Undoubtedly, the main objective of these initiatives is the development of micro and small entrepreneurship in our country. As mentioned earlier, the Central Bank also pays attention to the application of digital technologies. The introduction of digital technologies in the microfinance sector as well as in the financial sector in general is included in our strategy. We pay special attention to ensuring information security and adequate management of cybersecurity challenges. In this regard, our strategy includes a separate action plan on digital financial initiatives, including special regulations, open banking, digital identification, and cybersecurity initiatives,” he said.
According to him, in March this year, the Central Bank established information security requirements for the entire financial sector, including the microfinance sector, banks, and credit organizations.
“This will remain one of our priority supervisory and regulatory objectives in the coming years. In addition, updates and changes to the Central Bank's risk management requirements are expected in light of the changes in legislation on non-bank credit organizations. To this end, work is underway to update prudential regulations for non-bank credit organizations,” he added.