Central Bank: Azerbaijani banks to apply responsible lending policy in 2014

Business Materials 26 December 2013 17:29 (UTC +04:00)

Baku, Azerbaijan, Dec.26
by Emin Aliyev - Trend:

Measures on protecting and improving the quality of the loan portfolio formed by Azerbaijani banks will be strengthened in 2014, the Central Bank of Azerbaijan's report on the main directions of monetary policy and financial stability in 2014 said today.

"The new regulatory measures aimed at preventing high "leverage" on consumer loans will be determined to maintain a balance between consumer lending and solvency of the population," according to the report. "It is planned to apply the debt-income ratio in lending, while the Central Bank will determine the maximum threshold on this coefficient."

Moreover, the country's banks will apply a responsible lending policy in 2014.

"The requirements relating to the banks' compliance with certain rules of behavior with consumers, providing them with products corresponding to income, as well as providing full and accurate information regarding the cost of these products will be toughened as part of this policy," the central bank added.

Translated by NH
Edited by CN