Central Bank of Azerbaijan developing bancassurance model

The Central Bank of Azerbaijan (CBA) is working on developing a bancassurance model, said Rustam Tahirov, Director of the CBA's Department for Sustainable Financial Sector Development, during the presentation of the Asian Development Bank's Asia SME Monitor 2025 (ASM 2025) in Baku, Report informs.

According to Tahirov, the CBA is cooperating with both the banking and insurance sectors to assess how the bancassurance model can help expand financing opportunities.

"These mechanisms allow us to gather insights that are reflected in our strategies and policies. Initiatives such as the development of credit ratings, a local credit rating mechanism, and other measures to reduce information asymmetry will ultimately help lower credit risk," he said.

Tahirov added that the Central Bank uses various channels to collect feedback on small and medium-sized enterprises (SMEs), their financing conditions, and potential advantages.

Based on a comprehensive diagnostic study, the CBA has developed a financial inclusion strategy. "The strategy aims to ensure that not just one but several state agencies are responsible for addressing SME financing issues," he emphasized.