Regulatory Alerts2021-03-30
Regulations on Equity Investments in Other Legal Entities by Credit Institutions
The Management Board of the Central Bank of Azerbaijan issued these regulations to establish terms, limits, and reporting procedures for equity investments by commercial banks and foreign bank branches operating in the country. The rules cap direct or indirect investments at ten percent of a bank’s own funds per legal entity and forty percent in total, while granting a two-year disposal window for shares acquired through debt satisfaction. Banks must implement board-approved investment procedures, maintain detailed monitoring records, and submit standardized monthly reports to the Central Bank within five business days following each reporting month.
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