The Central Bank of the Republic of Azerbaijan has amended three prudential rulebooks to align banks’ credit assessment, risk management and provisioning more closely with underlying risks. Effective Nov. 9, 2026, the changes refine requirements for lending based on behavioral models and the corresponding provisioning treatment, with borrower repayment capacity to be assessed using more reliable information. The amendments also broaden the consideration of risks in asset classification, improve the evaluation of credit obligation data for businesses selling goods on installment and strengthen guarantee requirements in consumer lending. They follow earlier changes to credit risk management rules that introduced borrower blocks and disbursement waiting periods for remote consumer loans.
Central Bank of the Republic of Azerbaijan strengthens bank credit risk, provisioning and borrower assessment requirements
The Central Bank of the Republic of Azerbaijan has strengthened banks’ credit risk, provisioning and borrower assessment requirements from Nov. 9, 2026. The changes cover behavioral model lending, asset classification, installment sellers’ credit obligation data and guarantees in consumer lending.