15:22 - 1.08.2025

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August 1, Fineko/abc.az. The Central Bank of Azerbaijan (CBA) has strengthened the regulatory framework for more responsible and healthy lending on consumer credit cards (credit lines), ABC.AZ reports, referring to the CBA.

The main focus of the adopted regulatory changes is aimed at preventing excessive borrowing by the population and ensuring the stability of the capital of the banking system.

It was noted that as part of the analysis conducted by the CBA, there has recently been a high growth rate of credit cards in the consumer lending segment. Although this trend is taking place amid a positive increase in household disposable incomes, it is also accompanied by an increase in the share of debt burden in these incomes.

According to the changes, the borrower's credit card is limited to a maximum of 5-fold his net income after taxes. The specified limit is also calculated taking into account the borrower's obligations to other credit institutions. This will make it possible to take into account financial indicators reflecting the real solvency of borrowers and minimize risks on the part of banks, recognizing them at an earlier stage. Credit lines secured by cash, as well as by a bank and precious metals, are excluded from calculating the 5-fold standard of the borrower's net income after taxation. The total amount of consumer credit lines exceeding this limit in accordance with the new requirement should not exceed 1% of the capital of a Class I bank after deductions.