The Central Bank of Azerbaijan has revised its credit risk rules. The corresponding decision was signed by CBA Chairman Taleh Kazimov, FinFly reports.
Changes were made to three documents: the rules for classifying assets and creating special reserves for possible losses, the rules for prudential standards and credit risk requirements, and the rules for managing credit risks in banks.
According to the decision, if, when issuing a loan to legal entities and individual entrepreneurs engaged in the sale of goods in installments, a comparison of the data provided to the bank by the borrower on their installment sales portfolio and the number of buyers with the corresponding data provided to credit bureaus reveals a match of less than 90% on at least one indicator, such an asset is considered unsatisfactory.
In addition, if a guarantee serves as collateral for a consumer loan, the guarantor's BGN ratio must not exceed 70%.
Also, if a borrower's income can be established on the basis of relevant documents (salary certificate, scholarship certificate, certificate of pension and benefit payments, bank certificate of interest income and other documents confirming income) or data from state information resources and systems, the use of such a borrower's projected income based on a behavioral model is not allowed. This requirement applies to credit obligations arising after the date this provision enters into force.
The decision will enter into force in one month.
