Azerbaijan central bank issues enforcement order to PAŞA Bank over lending rules

The Central Bank of Azerbaijan (CBA) has issued a mandatory enforcement order to PAŞA Bank, one of the country’s leading commercial banks, over a breach of consumer lending regulations, Report news agency said, citing a statement from the regulator.

The CBA found that the bank exceeded the maximum aggregate amount allowed for consumer loans with terms of five years or more, as defined in section 4.8 of the “Rules on prudential standards and requirements related to credit risks, including large credit exposures.”

The enforcement order was issued under Article 47.1 of the Law on Banks. PAŞA Bank has been instructed to promptly correct the violation and strengthen its internal control procedures.

The CBA emphasized that the violation does not pose a threat to the financial stability of PAŞA Bank.