CBA official says rising costs and fraud are key challenges for financial sector

Rising operational costs and growing fraud risks are among the main challenges facing the financial sector, Vusal Khalilov, a board member of the Central Bank of Azerbaijan (CBAR), said at the 10th International Finance and Banking Summit, according to Report.

He said cost pressures stem largely from ongoing digitalization efforts and the expansion of cashless payment systems, adding that these expenses are being felt most strongly by banks, payment institutions, and businesses.

"Fraud-related threats, unfortunately, directly concern every citizen," Khalilov noted.

He added that the central bank is working with industry participants to address these issues. According to him, negotiations are underway with international card organizations to optimize costs. In this context, a board decision dated March 18 reduced the interchange fee cap by 0.25 percentage points.

The measure came into effect in June and is expected to help lower costs for businesses.