BAKU, Azerbaijan, April 28. The Central Bank of
Azerbaijan (CBA) has defined its next priorities for the banking
sector in the “Report on the Implementation Status of the Financial
Sector Development Strategy for 2024-2026 for 2025,” Trend reports, citing the
CBA.
The planned measures include improving supervisory processes in
line with a risk-based regulation and control model, as well as
enhancing the banking supervision framework’s compliance with Basel
principles, including the introduction of long-term liquidity
management requirements.
The Central Bank also plans to strengthen the legal and
regulatory framework for banking resolution, prepare requirements
for the implementation of the Internal Capital Adequacy Assessment
Process (ICAAP), and provide support to banks.
Among the key priorities are strengthening the institutional
capacity of non-bank credit organizations (NBCOs), expanding
alternative financing opportunities, and developing a framework for
consolidated regulation and supervision.
In addition, the Central Bank intends to create and adapt
regulatory mechanisms for alternative financial instruments and
introduce selected supervisory technology (SupTech) solutions.
One of the goals includes assessing prospects for expanding
access to Islamic banking products and increasing financing
opportunities for agricultural companies, with a particular focus
on micro, small, and medium-sized enterprises.
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