MICROCAPITAL BRIEF: World Bank and Central Bank of Azerbaijan (CBA) Present Consumer Protection Plan for Microfinance and Traditional Financial Service Consumers

The World Bank and the Central Bank of Azerbaijan (CBA) recently presented a plan titled, “The Protection of Rights and Financial Literacy of Financial Service Consumers in Azerbaijan.”  According to the Azerbaijan Microfinance Association (AMFA), which is a trade association representing Azerbaijani non-bank credit organizations, approximately 1,200 consumers provided feedback towards the development of the consumer protection plan.  Mr. Alim Guliyev, CBA First Deputy CEO, states that the plan is based on two developments in the financial services sector, i.e., the introduction of financial sector legislation and regulation as well as the rise in the financial literacy of the population.  CBA will be the coordinating body between different areas of the financial services sector, including banking, insurance and investment services. In connection with these developments, CBA will create a special unit and hotline dedicated to responding to consumer complaints regarding business practices. Mr. Guliyev comments that the “[P]rotection of the consumers’ rights is especially important in the conditions of financial crisis.”

About World Bank:
The World Bank is an international financial institution that provides leveraged loans to developing countries for capital programs. The World Bank has a stated goal of reducing poverty. The World Bank differs from the World Bank Group, in that it consists of only : the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). IBRD has 186 member countries, while IDA has 168 members. The World Bank Group incorporates an additional three institutions: International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and International Centre for Settlement of Investment Disputes. World Bank website: http://www.worldbank.org/
 
About Central Bank of Azerbaijan (CBA):
Established in 1992, the Central Bank of Azerbaijan (CBA) is the nation’s central bank. CBA is the primary regulatory authority over both state and private banks in the country and controls the monetary policy of the country.  In addition, CBA formulates the level of foreign direct investment in the banking sector.  CBA website: http://www.nba.az/default.aspx?go=120&lng=en
 
Azerbaijan Microfinance Association (AMFA):
The Azerbaijan Microfinance Association (AMFA) is a trade association that represents non-bank credit organizations.  AMFA acts as a liaison between non-bank credit organizations that conduct microfinance activities in the country and the traditional banking sector.  AMFA website: http://amfa.az/index.php?lang=eng 
 
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