Rise in Number of Non-Bank Credit Organizations in Azerbaijan
Azerbaijan, Baku, 1 September/ Trend , corr I. Khalilova/ MikroInvest non-credit organization has been registered by the Ministry of Taxes through Single Window system, the Ministry said.
The only founder is Universal Holding. The authorized capital stock of the newly-founded organization makes up AZN 100.
As of 1 July of 2008, there are 96 non-bank credit institutions all over the country 77 of which are credit unions and 18 non-bank credit organizations founded by international humanitarian organizations.
The National Bank of Azerbaijan has designed draft of Law on Non-Bank Credit Organizations (NBCO) which has already been submitted to Milli Majlis (parliament).
According to draft, non-bank credit organizations are deprived of a right to receive deposits and will perform restricted banking activities. NBCO can grant finance through its own capital granted by other financial institutions.
The draft calls for establishment of two types of these institutions- commercial and non-commercial. There is certain difference between them. Separate non-bank credit institutions are expected to be permitted to receive deposits. This finance is the deposits of borrowers of these institutions.
The capital requirements for NBCO will also be increased in line with new legislation (at present it makes up AZN 4,000), but it will differ from the amount of capital fixed for bank sector.
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