15:45 - 15.10.2026

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October 15, Fineko/abc.az. Azerbaijan is preparing the amendments to the legislation regulating the financing of non-bank credit organizations (NBCOs), CBA Director General Shahin Mahmudzade said at a press conference dedicated to regulator's Financial Stability Report for the 1st half of 2026.

According to Mahmudzade, the CBA helps hedge the currency risks of NBCOs that attract borrowed funds from abroad. This allows them to indirectly reduce their financing costs and at the same time maintain the competitiveness of banks.

"What does this mean? If the possibilities of external financing were limited and it was impossible to attract funds from abroad, banks could declare that the NBCO has no other sources of financing, and therefore they have the right to set higher interest rates.

However, by creating conditions to support external financing, including the ability to hedge currency risks, we maintain alternative sources of financing on the market. As a result, NBCOs can attract funds from alternative sources, which limits banks' ability to raise interest rates. This can affect both the cost of loans and the volume of loans offered," the CBA representative explained.

In addition, according to Mahnmudzade, it is planned to make certain changes to the legislation regulating the activities of organizations providing micro-loans. It is also expected to increase competition between banks and expand opportunities for financial transactions.

"These issues are on our agenda. The relevant proposals will be discussed with the Economic Council. Since amendments to the legislation require a certain amount of time, the process is somewhat delayed. Nevertheless, it is planned to complete it by the end of next year," Mahmudzade said.

He also commented on the possibility of creating a separate fund to finance the financial sector.

"There is no such experience in the world practice. The CBA provides funds to banks within the framework of sterilization and liquidity management mechanisms. The funds used for sterilization are stored in our accounts," Mahmudzadeh said.