Information by the Central Bank

02-06-2023

2 June 2023, Baku: The Central Bank of the Republic of Azerbaijan always attaches great importance to activities of non-bank credit institutions and strengthening their sustainable management.

Accordingly, the Bank regularly aligns the current legislation to best practices and positive experiences and takes necessary measures to formulate strategies on the development of NBCIs. Moreover, the Bank issues crucial instructions and monitors their implementation to ensure compliance with the requirements of the legislation and regulations of the Central Bank as part of supervision of NBCIs.

As a result of accomplished efforts, the Management Board of the Central Bank with its decision of 31 May 2023 revoked the license of the Gold Finance Non-bank Credit Institution Limited Liability Company and the Visa Credit Non-bank Credit Institution Limited Liability Company due to incompliance with instructions of the supervisory authority on elimination of violations in activities under the Law of the Republic of Azerbaijan on Non-bank Credit Institutions.  Note that, the said institutions classified loans issued to customers as loss assets in full and violated capital requirements. Moreover, the above institutions have not carried out any lending activities in recent several years at all. In this regard, although the Central Bank gave them respite and related instructions to restore capital and improve the quality of assets, they failed to take necessary actions.

According to Article 25.4 of the Law of the Republic of Azerbaijan in Non-bank Credit Institutions, a non-bank credit institution ceases operations on the day the decision on revocation of its license takes affect and is liquidated as per the Civil Code of the Republic of Azerbaijan.