Approved by Board of National Bank of the Azerbaijan Republic of November 18, 2008 No. 34

Rules of issuance of credits in banks

1. General provisions

1.1. These rules are prepared according to the Laws of the Azerbaijan Republic "About National Bank of the Azerbaijan Republic" and "About banks", other legal acts of the Azerbaijan Republic, acts of normative nature of National Bank of the Azerbaijan Republic (further - National Bank), and also the international practice.

1.2. These rules establish the minimum requirements to internal strategy and rules of banks on credit risk and issuance of credits in the commercial banks and local branches of foreign banks operating in the country (further - banks).

1.3. Each bank according to specifics and amount of the activities shall develop strategy on issuance of credits, and also intra bank rules on credit risk management, including by determination, risk assessment and its control.

1.4. The credit strategy of bank, intra bank rules on issuance of credits, and also on credit risk management shall be prepared by Board together with the relevant committees and are approved by the Supervisory board.

1.5. The approved strategy and intra bank rules of bank shall be documented, brought to the attention the relevant structural division and employees.

1.6. Strategy and intra bank rules shall be reviewed at least once a year.

1.7. Requirements of these rules, except for Item 4.1. 12, do not extend to interbank credits.

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