Unofficial translation (c) Soyuzpravoinform LLC
of July 22, 2022 No. 29/1-1
About approval "Procedure for classification of assets and creation of special reserves for compensation of possible losses"
According to articles 34.2.12 of the Law of the Azerbaijan Republic "About banks" and article 22.0.17 of the Law of the Azerbaijan Republic "About the Central bank of the Azerbaijan Republic" the Board of the Central bank of the Azerbaijan Republic DECIDES:
1. Approve "Procedure for classification of assets and creation of special reserves for compensation of possible losses" it (is applied).
2. Repeal the Resolution of the liquidated Chamber on supervision of the financial markets of the Azerbaijan Republic "About approval of "Rules of classification of assets and creation of special reserves for compensation of possible losses" of November 16, 2018 No. 1851100014.
3. Charge to Legal department (Rena Melikova) in 3-day time to provide submission of this Resolution to the Ministry of Justice of the Azerbaijan Republic for entering into the State register of legal acts of the Azerbaijan Republic.
Chairman of the Central bank
The Resolution of Board of the Central bank of the Azerbaijan Republic of July 22, 2022 No. 29/1-1 is approved
1.1. This Procedure is developed according to article 34.2.12 of the Law of the Azerbaijan Republic "About banks" (further - the Law), and also taking into account standards of Basel Committee on Banking Supervision, and determines rules of classification of assets and creation of special reserves for compensation of possible losses by assets in the banks operating in the Azerbaijan Republic, and local branches of foreign banks (further - banks).
1.2. This Procedure does not extend to the educational student's credits issued at the expense of means of the Educational student's credit fund operating in subordination of the Ministry of Education of the Azerbaijan Republic (except as specified when the bank incurs financial liabilities).
2.1. The concepts used in this Procedure have the following values:
2.0.1. assets - the credits issued by bank, other assets placed on terms of return, pre-paid by bank the means, assets which are not used in banking, investments in share in the capital of legal entities and off-balance obligations;
2.0.2. residual amount - outstanding part of the credit on principal debt. Residual cost of not credit asset is its book value;
2.0.3. total amount - residual amount of asset and the amount of the percent added on this remaining balance, commission charges, penalties and other outstanding amounts;
2.0.4. market price - the goods price (works, services) developing as a result of interaction of the demand and supply;
2.0.5. the liquid market - the market in which there is enough offers of purchase and sale and also on which it is possible to perform sale in acceptable time limits and at the market price;
2.0.6. clean market price - difference between the market price of asset and all expenses connected with its sale;
2.0.7. consumer loan - the loan granted to physical persons on the purposes which are not connected with business or professional activity, and also with acquisition and construction of real estate;
2.0.8. the credit for the real estate - the loan granted to physical persons for acquisition or construction of real estate for private consumption;
2.0.9. business loan - the loan granted to the legal entities and physical persons performing business activity without formation of legal entity in the entrepreneurial purposes;
Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info
Database include more 50000 documents. You can find needed documents using search system. For effective work you can mix any on documents parameters: country, documents type, date range, teams or tags.
More about search system
If you cannot find the required document, or you do not know where to begin, go to Help section.
In this section, we’ve tried to describe in detail the features and capabilities of the system, as well as the most effective techniques for working with the database.
You also may open the section Frequently asked questions. This section provides answers to questions set by users.