Unofficial translation (c) Soyuzpravoinform LLC
of November 15, 2024 No. 46/2
About approval "Procedure for credit risk management in non-bank credit institutions
Based on article 19.1.1 of the Law of the Azerbaijan Republic "About non-bank credit institutions" (further - the Law) and article 22.1.17 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 credit risk management in non-bank credit institutions" it (is applied).
2. Charge to Legal support department of the financial markets to provide in 3-day time 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
Talekh Kazimov
Approved by the Resolution of Board of the Central bank of the Azerbaijan Republic of November 15, 2024, No. 46/2
This Procedure is developed according to article 19.1.1 of the Law of the Azerbaijan Republic "About non-bank credit institutions" (further - the Law) and Article 744.3 of the Civil code of the Azerbaijan Republic and determines requirements for credit risk management in non-bank credit institutions (further - NBKO), and also procedure of payments of the actual annual interest rate by the credit agreement.
2.1. The concepts used in this Procedure have the following values:
2.1.1. credit risk - risk of emergence of losses as a result of inability of the borrower or the issuer to fulfill the obligations in accordance with the terms of the agreement;
2.1.2. risk appetite - amount of risk which NBKO wants to accept within the riskosposobnost for goal achievement, established in commercial strategy;
2.1.3. the actual annual interest rate - the annual interest rate calculated according to the procedure, established by Appendix No. 2 to this Procedure;
2.1.4. 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 the real estate;
2.1.5. the daily (short-term) credit (further - the daily credit) - the consumer loan providing interest payment and (or) other payments specified in the agreement, in day of issue of principal debt or along with return of principal debt (except for case of return of principal debt in parts) or the frequency (no more than 30 days) estimated in days. The daily credit shall meet the following requirements:
2.1.5.1. it is issued in national currency;
2.1.5.2. the maximum amount of the one-time loan granted to the borrower constitutes 500 (five hundred) manats;
2.1.5.3. the maximum daily interest rate constitutes % 0,3;
2.1.5.4. the term of return constitutes at most 45 (forty five) days;
2.1.5.5. in case of application concerning overdue payments percent or penalty (except as specified applications of percent for delay) shall not exceed 2 (two)-fold sizes of the interest rate applied daily to the main amount;
2.1.5.6. total amount of all payments which are subject to implementation on the credit shall not exceed 100% of principal debt;
2.1.5.7. in case of application of percent for delay or penalties percent on principal debt shall not be charged more than 30 (thirty) days;
2.1.5.8. the real or personal estate does not act as providing;
2.1.5.9. it is not re-structured;
2.1.6. business loan - the credit issued to the legal entities and physical persons performing business activity without formation of legal entity for the purpose of entrepreneurship and also agricultural loans;
2.1.7. agricultural loan - the business loan issued to the subjects of micro, small and medium business performing activities in the agricultural sector and family peasant economy (further - subjects of agricultural industry), in national currency for financing of production costs of agricultural products (acquisition of means of agricultural production, mineral fertilizers, biohumus, seeds and pesticides, and also use of agrochemical and agrotechnical services, etc.), trade and conversion of agricultural products which at least three quarters of production concern to the subject of agricultural industry, and also projects of development of the agricultural sector (laying of gardens, construction of storage locations of agricultural products, the organization of livestock economy (fishery, poultry farming, etc.));
2.1.8. the credit for the real estate - the loan granted to physical persons on acquisition or construction of the real estate for private consumption;
2.1.9. agricultural means of production - agricultural machinery (for example, the tractor, the equipment for preparation and processing of the soil, the sowing and landing equipment, the zhatvenno-harvest equipment, spreader of fertilizers and the machine for preparation of fertilizers, etc.), processing equipment, including sets and the equipment of irrigating systems, and also breeding animals;
2.1.10. monthly payment - monthly payment of principal debt and the added percent and (or) other payments specified in the agreement (on credit, leasing and other debt obligations), equal parts every month (annuity payments). In agreements of credit line and agreements without annuity payment (credit, leasing and other debt obligations) the monthly payment is calculated in annuity procedure based on the total amount of the obligation (credit limit on credit lines) and remaining period before the termination of the agreement;
2.1.11. the income of the borrower - the average monthly income of the borrower physical person for the last 6 (six) months in a row supported by the relevant documents (the reference about the salary, the reference from educational institution of grant, the certificate of payment to the borrower of pensions and benefits by the structure exercising control in the sphere of social protection, the bank reference confirming interest incomes on the existing deposit accounts of the borrower or other documents confirming it the income), on borrowers whose income it is not connected with work for hire (the works performed based on the agreement according to the labor law) - the average monthly income for the last 12 (twelve) months and other income. The average monthly income of the borrower is calculated by division of total income for the last 6 (six) months on 6 (on 12 for borrowers whose income is not connected with work for hire). If integration into electronic information system of the relevant state bodies (structures) is provided, the relevant documents and information can be received by NBKO from this information system in real time;
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.