Regulatory Alerts2021-03-30
Regulations on Bank Operations with Fixed Assets (Property)
The Management Board of the Central Bank of Azerbaijan issued these regulations to establish comprehensive rules for banks managing fixed assets, aiming to prevent excessive concentration in illiquid property and safeguard liquidity. The framework categorizes fixed assets into banking and non-banking use, caps investments in banking-use property at paid-in capital without prior Central Bank approval, and mandates strict disposal timelines of three years for immovable assets and 120 days for movable ones. Banks must conduct annual appraisals, classify undispersed assets as loss reserves, and follow prescribed accounting treatments for ordinary or installment-based disposals to ensure accurate financial reporting.
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