The Central Bank of Azerbaijan is currently working to update prudential regulations for non-bank credit institutions.
As Day.Az reports with reference to Trend, the General Director of the Central Bank of Azerbaijan said this today Togrul Aliyev during the conference “Innovative Solutions for Sustainable Microfinance”.
“The formation of a microfinance model involves creating opportunities to provide additional financial services to institutions operating in this sector, as well as increasing their competitiveness. Undoubtedly, the main goal of these initiatives is the development of micro and small entrepreneurship in our country. As mentioned earlier, the Central Bank also pays attention to the use of digital technologies. The introduction of digital technologies in the microfinance sector, as well as in the financial sector as a whole, is included in our strategy. We pay special attention to ensuring information security and adequately managing cybersecurity challenges. In this regard, our strategy includes a separate action plan. on digital financial initiatives, including special regulations, open banking, digital identity and cybersecurity initiatives,” he said.
According to him, in March of this year, the Central Bank established information security requirements for the entire financial sector, including the microfinance sector, banks and credit organizations.
“In the coming years, this will remain one of our priority goals in the field of supervision and regulation. In addition, in light of changes in the legislation on non-bank credit institutions, updates and changes in the requirements of the Central Bank regarding risk management are expected. To this end, work is underway to update prudential regulations for non-bank credit institutions,” he added.
It should be noted that on November 1, the Central Bank of Azerbaijan (CBA) will announce the next decision on the parameters of the interest rate corridor.