By the end of March 2024, Azerbaijani banks must develop a new strategic plan in accordance with the “Corporate Governance Standards in Banks” approved by the Central Bank (CBA) and submit it to the regulator, Report informs, citing the CBA.
In addition, banks must assess the implementation of standards every three months and inform the regulator about the results.
As stated in the requirements of the Basel Committee on Banking Supervision, the introduction of effective corporate governance requirements is generally necessary for the financial stability of banks.
In this context, the “Corporate Governance Standards in Banks” were adopted by a decision of the CBA board on August 28, 2023, and came into force on September 8. The main goal of adopting standards is to clearly define the powers and responsibilities of management bodies and to achieve organization of the banks’ work in accordance with the principles of reliability, transparency, and accountability, the CBA said in a statement.