Regulatory Alerts2021-07-14
Procedure for Temporary Regulation of Credit Institutions During the COVID-19 Pandemic
The Central Bank of Azerbaijan issued this procedure to modify loan classification, capital adequacy thresholds, and dividend policies in response to the COVID-19 pandemic. It requires that subsidized and preferential loans to affected entities retain their pre-restructuring classification until April 2021, while specific risk weight exemptions for medical suppliers and consumer loans remain valid through early 2021. The regulation further lowers capital adequacy floors to 9–11 percent, sets the counter-cyclical buffer at zero percent until January 2022, defers dividends until October 2021, and suspends market and operational risk calculations for Tier I ratios.
Share