New regulations on credit risk management for non-bank credit and microfinance organizations in Azerbaijan are set to be adopted soon.

Togrul Aliyev, Director General of the Central Bank of Azerbaijan (CBA), announced this at the Microfinance Conference focused on "Innovative Solutions for Sustainable Microfinance," held in Baku, Azernews reports.

"New rules for credit risk management have been developed for specific credit institutions. These documents were discussed with the Association of Non-Bank Financial Institutions, and we received valuable feedback from various credit institutions. We expect these documents to be approved soon," he stated.

Aliyev emphasized that one of the main priorities is to strengthen the institutional capacity of microfinance and credit institutions.

"In this context, we are enhancing corporate governance standards and improving outsourcing regulations for banks and credit institutions. I want to highlight that our initiatives aimed at protecting the rights of financial services consumers will help foster inclusion and enhance risk management in microfinance institutions and other financial organizations.

Considering current challenges, it’s important to note that the Central Bank approved a roadmap for sustainable financing last year and adopted principles of sustainable financing this year. These principles focus on managing risks related to climate change, as well as environmental, social, and governance factors, which are particularly relevant for microfinance organizations and non-bank credit institutions. Our goal is to equip these organizations with sustainable financing expertise and best practices," Aliyev concluded.