Regulatory Alerts2026-06-05
Regulation on Credit Risk Management in Non-Bank Credit Institutions
The Central Bank of the Republic of Azerbaijan issued Resolution No. 46/2 to establish a comprehensive credit risk management framework for non-bank credit institutions (NBCIs). The regulation mandates separate risk assessment and loan issuance units, standardizes effective annual rate calculations and disclosures, and imposes strict caps on daily consumer loans regarding principal, interest rates, maturity, and total repayments. It further defines specialized agricultural and real estate lending criteria, requires phased compliance over one to six months for existing institutions, and standardizes borrower evaluation procedures and credit file documentation.
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