Central Bank of Azerbaijan drafts new rules on AI and data governance for finance
The Central Bank of Azerbaijan plans to issue methodological guidance on AI governance by year-end and a data management document in November for the financial sector.
Elmir Hasanli, director of the Data Department at the Central Bank of Azerbaijan (CBA), said at an AMFA conference in Baku that the regulator will present financial institutions with methodological guidance on AI governance by the end of the year and a data management guideline in November. He noted the AI methodology was developed jointly with banks, with sector involvement throughout.
Hasanli highlighted two key risks of using AI in lending: model drift over time and bias, where models trained on historical decisions may inherit and perpetuate past prejudices. He stressed that explainability of decisions is essential — when a loan is denied, both the customer and the responsible party must understand the reasons clearly.
The data management guideline will cover banks, non-bank credit organizations, and analytical entities, addressing data quality, governance, accessibility and completeness. The goal is to align the entire financial sector around common standards rather than treating this as an isolated initiative.
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