Regulatory Alerts2024-12-03
Regulation on prudent management of non-bank credit institutions
The Central Bank of the Republic of Azerbaijan issued Resolution No. 46/1 to establish comprehensive prudential norms for non-bank credit institutions (NBCIs). The regulation mandates minimum authorized capital of one million manat for commercial entities and 100,000 manat for non-commercial ones, while capping loans to single borrowers at 30 percent of capital and imposing tiered liability-to-capital ratios based on sector-wide consumer loan interest rates. It further requires quarterly asset classification into standard and non-standard categories, dictating specific reserve rates for consumer, business, and agricultural loans alongside strict governance rules for related-party lending and off-balance sheet liabilities.
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