15:42 - 8.01.2025

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January 8, Fineko/abc.az. "The Central Bank has approved the rules of lending based on behavioral models. Based on behavioral patterns, it is assumed that banks give loans to individual entrepreneurs and individuals. However, this model also imposes certain restrictions on lending. Thus, banks will be able to offer loans based on behavioral patterns of no more than 10% of the loan portfolio. At that, giving of loans based on the model will be stopped when the volume of loans given, based on the behavior model and overdue for more than 90 days reaches 10% of this loan portfolio."

ABC.AZ informs that MP Vugar Bayramov, an economist, wrote about this on his social network account.

The MP noted that the launch of this model raises two important issues: first, are Azerbaijani banks ready to use this model? Secondly, can the application of this model increase the risks of borrowing, as well as lead to restrictions on lending?

He said that the behavioral credit model has long been used in developed countries:

"Unlike a traditional credit risk profile based on statistical data such as official returns, payment history, this model takes into account dynamic variables such as spending habits, transaction frequency, and digital footprint."