BAKU, Azerbaijan, October 23. The share of non-bank credit organizations (NBCOs) in Azerbaijan's financial system stands at 1.6 percent, Deputy Director of Financial Stability Department at the Central Bank Atakhan Hasanov said at a conference on "Innovative Solutions for Sustainable Microfinance" today, Trend reports.
"The share of non-bank credit organizations (NBCOs) in Azerbaijan's financial system is currently 1.6 percent. Despite this relatively small figure, the sector is experiencing one of the highest growth rates among financial sectors. In the first nine months of this year, the assets of NBCOs surged by 30 percent, reaching approximately 980 million manat. This strong growth in microfinance organizations reflects both the significant potential for development in this area and the pressing need for effective risk management," he said.
Hasanov also emphasized that given the small share of microfinance organizations in the financial system, they should not be considered a systemic risk factor in terms of financial stability.
"However, the specific activities of these organizations expose them to various multifaceted risks, with financial and credit risk being the most significant," he added.