Regulatory Alerts2021-02-02
Regulations on Prudential Regulation of Credit Unions
The Financial Markets Supervisory Authority of Azerbaijan issued these regulations to establish comprehensive prudential norms and reporting standards for credit unions. The framework mandates a minimum authorized capital of AZN 4,000, sets capital adequacy ratios at 0.25 during the first year and 0.20 subsequently, and requires asset-liability maturity matching with a minimum ratio of 1.0 across all delinquency buckets. Credit unions must classify loans quarterly to calculate special reserves ranging from zero to 100 percent, cap unsecured lending at a ratio of 0.2, limit single-member loans to ten times their capital share, and submit standardized quarterly financial statements by the seventh day of the following month.
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