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.
