FIMSA has applied another restriction to banks - RULES CHANGED

11:13 - 5.11.2019


November 5, Fineko/abc.az. The Financial Market Supervision Authority (FIMSA) has amended the "Rules on Regulation of Credit Risks of a Borrower or a Group of Related Borrowers".

With reference to FIMSA, ABC.AZ informs that FIMSA limited the maximum amount of a consumer loan for more than 7 years to 0.1% of bank's capital. The measure was taken as a next step in connection with the call of President Ilham Aliyev to improve further the business environment and increase lending to the real economy.

This change, regulating the maximum amount of credit risk in banks, will ensure the formation of responsible borrowing skills, affecting the fact that consumers did not take the necessary long-term consumer loans. The main purpose of these changes is to prevent consumer debts and protect their rights.

Earlier, amendments were made to the Rules on Calculation of Bank's Capital & its Adequacy, which has cut the risk rates of loans given to small & medium-sized enterprises (SMEs) and export financing in the non-oil sector. In the case of consumer loans, risk rates have been increased by applying a differentiated and tighter approach depending on income debt, interest rate, time and currency.

By Elmir Murad

 

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