Regulatory Alerts2025-11-28
Regulation on Related Party Transactions in Banks
The Central Bank of the Republic of Azerbaijan issued this regulation to establish minimum requirements and limits for banks' related party transactions, defining eligible parties and setting per-entity (10%), per-individual (3%), and aggregate (20%) credit exposure caps against total regulatory capital. It mandates collateral for significant loans, outlines concession rules and off-balance sheet inclusion ratios, and requires shareholder or supervisory board approvals based on loan size. Banks must report these transactions monthly, ensure annual internal audit compliance checks, and rectify any regulatory violations within 60 days.
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