CBA in 2014 set new regulatory requirements to maintain the balance between solvency and consumer lending

The National Bank of Azerbaijan (CBA) intends to make in conjunction with the Government's efforts to maintain inflation in 2014 at a one-digit level . This is stated in the statement of the bank on the main directions of monetary policy and financial stability in 2014 .

In order to achieve this goal, the CBA will give the necessary support through monetary policy. To do this, try to have an impact on core inflation means at its disposal regulatory methods.

The document states that in 2014 the exchange rate policy of the CBA will continue to aim to balance the foreign exchange market and stabilize the exchange rate of manat . To ensure the effective level of the real effective exchange rate ( RER) of manat the Central Bank will try to keep inflation below the inflation rate in the partner countries .

In the future, the CBA will strengthen measures to improve and protect the quality of banks' loan portfolio, with the purpose to prevent high leverage on consumer loans and identify new regulatory requirements to maintain the balance between solvency and consumer lending. There will be introduced ratio of debt to income and a maximum limit determined by this factor. Along with this, banks will have to apply a policy of responsible lending , which includes compliance with the relevant principles of banks handling customers, providing consumers with relevant products to their income , the disclosure of consumers accurate and complete information on the cost of banking products.

To increase financial literacy in 2014 CBA begin to prepare specialized mass online resource.

In general, monetary and exchange rate policy will be aimed at ensuring the stability of the exchange rate , reducing inflation and maintaining financial stability in the country . -15D -