Jalal Aliyev: New credit products to appear in Azerbaijan thanks to changes in regulation of NBCOs

Changes made to the regulations of non-bank credit organizations (NBCOs) in Azerbaijan will create conditions for developing new financial products in Azerbaijan, chairman of the Supervisory Board of the Azerbaijan Microfinance Association, Jalal Aliyev, said at the Azerbaijan Financial Forum, Report informs.

He noted that NBCO assets reached 1 billion manats ($588.2 million) by the end of 2024, which is more than three times higher than in 2020 and 24% more than last year. He noted that further growth is expected in 2025 thanks to new Central Bank rules aimed at supporting the development of credit organizations.

Furthermore, the authorized capital of NBCOs increased from 141.4 million manats ($83.1 million) in 2020 to 456.4 million manats ($268.4 million) by the end of 2024. The sector's net profit amounted to 231 million manats ($135.8 million), and the total volume of issued loans exceeded 800 million manats ($470.5 million).

"Changes in NBCO regulation will play an important role in expanding the availability of financial services, opening new opportunities for providing additional services and developing innovative credit products," Jalal Aliyev emphasized.

He also reminded that in November 2024, the Central Bank approved rules for prudential regulation and credit risk management for NBCOs.

"These measures are aimed at increasing the sustainability of organizations, improving corporate governance and enhancing credit quality," said Jalal Aliyev.