BAKU, Azerbaijan, June 12. Efforts to improve the legal and regulatory framework governing non-credit institutions, which are an important component of the banking sector, are continuing.
This is stated in the annual report of the Central Bank of Azerbaijan (CBA).
According to the report, the Central Bank of Azerbaijan’s “Strategic Framework for the Microfinance Model” assesses changes in sectoral legislation aimed at developing non-credit organizations, and plans for their phased implementation.
The report notes that to strengthen the institutional capacity of non-credit organizations, regulations have been approved establishing minimum requirements for external audits. The regulations include criteria for selecting auditors, the scope of audits, and requirements for coordination with internal audit functions.
In addition, a draft set of corporate governance standards has been prepared for non-credit organizations, which was discussed with sector representatives. The document is expected to be approved by the Central Bank.
