CBA: Credit bureaus in Azerbaijan are among pillars of financial stability

Credit bureaus in Azerbaijan are no longer just a scoring tool, but one of the main pillars of financial stability, Deputy Chairman of the Central Bank of Azerbaijan (CBA) Toghrul Aliyev said at the first International Conference on Credit Reporting in Baku, according to Report.

He noted that in the financial sector, which is becoming increasingly digital and undergoing a serious integration process, the strategic role of credit reporting systems has already gone far beyond the traditional scoring format: "Today, credit bureaus are one of the main pillars of the overall information infrastructure, including the financial system."

He added that credit bureaus play a significant role not only in individual scoring, but also in macroprudential policy, risk modeling, and expanding financial inclusion: "Credit bureaus serve responsible lending by reducing information asymmetry and the likelihood of default in credit markets, and also play an important role in macroprudential analysis, stress testing, and risk modeling within the framework of Basel III."

Aliyev also drew attention to the impact of artificial intelligence and machine learning on credit reporting: “AI-based models provide more accurate forecasts by processing large and complex databases in volumes that are inaccessible to traditional credit scoring. However, these technologies also raise issues such as model risk management and algorithm transparency.”