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CBA: No need in toughening requirements to capital of non-bank credit organizations

Business Materials 27 September 2013 22:03 (UTC +04:00)

Azerbaijan, Baku, Sept. 27 /Trend, A. Akhundov/

The Central Bank of Azerbaijan (CBA) does not see any need to toughen requirements for the capital of non-bank credit organizations (NBCO), CBA Director General, Rashad Orujov told Trend on Friday.

According to him, the regulator's aspiration to capitalize the banking sector will not affect the NBCOs. According to CBA's decision, the minimum total capital of country's banks will be increased from 10 million to 50 million manats from January1, 2014.

"At present, we do not see the need to take a similar decision for the NBCOs. After adoption of the law 'On non-bank credit organizations' [in late 2009], they are just beginning to deploy their operations. The sector begins to form, and there is no need to toughen the requirements," Orujov said.

According to the rules of prudential regulation of non-bank credit organizations, the minimum capital requirements for NBCOs, which have the right to take mortgage contribution when granting loans, was defined at the level of 300,000 manats, and for credit organizations without this right - at the level of 30,000 manats.

Orujov said that the requirement in the amount of 300,000 manats is not yet enough.

In the end of the first half of 2013, some 139 non-bank credit organizations were registered in the country, and 108 out of them are credit unions.

Official rate for Sept. 27 is 0.7845 AZN/USD.

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