Central Bank of Azerbaijan plans modernization of credit institutions oversight

The Central Bank of Azerbaijan intends to enhance supervisory processes as part of the transition to a risk-oriented model for regulating the activities of credit organizations, Report informs.

According to the CBA, the corresponding measures are outlined in the Financial Sector Development Strategy for 2024-2026.

Among the CBA's priorities are the introduction of long-term liquidity management requirements to bring banking supervision in line with the Basel Core Principles, the improvement of the legislative and regulatory framework in the area of bank resolution, as well as the development of requirements for the Internal Capital Adequacy Assessment Process (ICAAP).

In addition, plans include strengthening the institutional capacity of non-bank credit organizations, expanding alternative sources of financing, developing approaches to consolidated regulation and supervision, implementing SupTech technological solutions, developing Islamic banking, and expanding access to financing for agricultural companies, primarily micro, small, and medium-sized enterprises.