The banking sector in Azerbaijan has undergone a preliminary monitoring of climate risks, Shahin Mahmudzada, Executive Director of the Central Bank of Azerbaijan (CBA), told Report.
"In general, the CBA has initiated separate projects in this area. One of the two projects, implemented with the International Monetary Fund (IMF), focuses on data collection, while the other involves stress-test evaluations. Conducting a stress test requires initial data,” the director noted
He also pointed out that currently, developing countries like Azerbaijan face data challenges that need to be addressed before tackling other issues. This is a new field. “We are in the process of enhancing the capacity of our banks, which is a priority for us. However, there are few experts in this field in the country, as it is relatively new. It will take some time for banks to prepare. Banks need time to develop both their internal systems and their teams."