Information by the Central Bank

01-09-2025

01.09.2025, Baku: The Central Bank of the Republic of Azerbaijan continues ongoing supervision of non-bank credit institutions.

According to the amendments to the Law of the Republic of Azerbaijan on Non-Bank Credit Institutions (the Law), as well as within the frames of the 2024-2025 Financial Sector Development Strategy, the Management Board of the Central Bank of the Republic of Azerbaijan approved the Regulation on prudent management of non-bank credit institutions (Prudential Regulation) and the Regulation on credit risk management in non-bank credit institutions.

The Prudential Regulation introduced the minimum capital requirement of AZN1 million for active and new NBCIs established as a commercial legal entity. This measure will further enhance the role of NBCIs in financial intermediation and expand their access to more diversified funding sources. Overall, the requirements in the Law and Regulations are aimed at strengthening the financial resilience of NBCIs and consumer finance protection.

The Central Bank issued binding instructions to Finoko Non-Bank Credit Institution Open Joint-Stock Company and ‘İcraçı Kredit Agentliyi’ Limited Liability Company Non-Bank Credit Institution for failure to comply with the minimum capital requirement. However, over the past period both institutions failed to comply with the capital requirement. Consequently, in accordance with Article 25.1.4 of the Law of the Republic of Azerbaijan on Non-Bank Credit Institutions, the Management Board of the Central Bank, by its decision of 29 August 2025, revoked License BKT-28 of Finoko NBCI OJSC dated 22 September 2024 and License 132-QB of ‘İcraçı Kredit Agentliyi’ LLC NBCI dated 25 October 2002. 

According to Article 25.4 of the Law of the Republic of Azerbaijan on Non-Bank Credit Institutions, NBCIs cease operations from the day the decision on the revocation of their licenses takes effect and are liquidated under the Civil Code of the Republic of Azerbaijan.

The Central Bank will continue to closely monitor NBCIs and take necessary measures to ensure full compliance with prudential and legal requirements.