Cba Tightens Control Over Consumer Loans

"Unsecured loans need to be issued upon obtaining borrower's long-term financial statements and credit histories, under the requirements of CBA Regulations on Issue of Loans in Banks."

The bank went on saying: "Individuals should give a statement of salary or a statement of their earnings from other officially confirmed sources. To note, in an international practice unsecured loans are deemed to be the loan products, which require deeper evaluation and underwriting. Hense, confirmation of borrower's income and accordingly his/her indebtedness capacity is used to protect the credit portfolio quality, avoid deterioration of borrower's financial standing and boost bank's financial sustainability.

The CBA also stressed that it will continue efforts to raise financial awareness of the population.

Earlier a source in the Azerbaijani banking sector told that the CBA has called domestic banks to apply stricter regulations over paying loans to...