Functioning of Azerbaijani Non-Bank Credit Organizations May to be Regulated on New Legal Act Since 2008

Business Materials 1 September 2007 14:44 (UTC +04:00)

Azerbaijan, Baku / Trend corr.I.Khalilova / National Bank of Azerbaijan (NBA) has completed measures on developing the bill on non-bank credit organizations. The bill has already been submitted to the Milli Majlis (Azerbaijani Parliament), NBA reported. NBA hopes the Parliament will discuss the bill during the autumn session.

Non-bank credit organizations are deprived the right to receive deposits from population and will implement limited bang functioning. Non-bank credit organizations may allocate credits through their own capitals or funds drawn from financial institutions.

The document envisages establishment of two types of the institute, including commercial and non-commercial. There are certain differences between them. Some non-bank credit institutions will be able to draw deposits.

Requirements to non-bank credit organizations' capital will be increased, but will differ from the volume of capital fixed for bank sector in compliance with the new bill.

The experience of foreign construes was taken into consideration during development of the document. There is no single formula on micro crediting, but there are special recommendations adopted by the main donors in this market in 2001.