BAKU, Azerbaijan, October 23. New rules for credit risk management in non-bank credit and microfinance organizations in Azerbaijan will be adopted shortly, the Director General of the Central Bank of Azerbaijan (CBA) Togrul Aliyev said at the conference “Innovative Solutions for Sustainable Microfinance” on October 23, Trend reports.
“New rules for credit risk management in certain credit organizations have been developed. These documents have been discussed with the Association of Non-Banking Financial Organizations and credit organizations, and feedback and suggestions have been received. It is expected that these documents will be adopted shortly,” he said.
According to him, one of the key priorities is to strengthen the institutional capacity of microfinance organizations and credit institutions.
“In this context, we are strengthening corporate governance requirements and improving regulations on outsourcing in banks and credit institutions. I would like to particularly emphasize that our initiatives to protect the rights of consumers of financial services will support inclusiveness and improve risk management both in microfinance institutions and other financial institutions. It is important to note that given the current challenges, the Central Bank approved a roadmap for sustainable finance last year and this year adopted sustainable finance principles. The focus is on managing risks related to climate change and environmental, social, and governance factors, which is particularly important for microfinance institutions and non-bank credit institutions. The aim is to transfer experience and best practices of sustainable finance to these organizations,” Aliyev noted.