Transparent Pricing In Azerbaijan

  The microfinance sector in Azerbaijan originated in the post conflict era of the 1990s when international relief organizations started providing microfinance services in response to the humanitarian crisis. Later, the steady growth of the sector, together with intensified competition resulting from the entrance of commercial banks to the market, triggered the Central Bank of Azerbaijan to revoke the humanitarian status of non-bank credit institutions (NBCOs). During the past decade, the industry has shown remarkable growth in the number of microfinance institutions, active borrowers served and gross loan portfolio disbursed. Down scaling commercial banks, credit unions and non-bank credit organizations (NBCOs) are the main players in the Azerbaijan microfinance landscape.

The Central Bank of Azerbaijan regulates banks and non-bank credit institutions. The Law on Non-bank Financial Institutions enacted in 2009 and the subsequent guidelines issued structured the regulatory framework of the Microfinance industry. Although there exists general legislation for consumer protection and rights, legislation covering truth-in-lending and specific Acts relevant to consumers of financial services have not yet been initiated.  The Azerbaijan Microfinance Association (AMFA) is a key figure in promoting and advancing consumer protection and responsible finance among its members.