BAKU, Azerbaijan, October 14.
The International Monetary Fund (IMF) has presented recommendations
for improving strategic management at the Central Bank of
Azerbaijan (CBA).
This was announced in a statement published by the CBA.
According to the information, IMF experts visited the bank as
part of a technical assistance mission.
"During the mission, the team examined the organization of the
strategic planning process at the Central Bank, the identification
and assessment of strategic risks, decision-making mechanisms
regarding risk management, and existing approaches to strategy
implementation and monitoring.
Based on the analysis and discussions, and taking international
best practices into account, opportunities for improving operations
in these areas were identified, and relevant recommendations were
presented.
Following the mission, a meeting was held with the IMF
delegation, attended by Central Bank Deputy Chairpersons Gular
Pashayeva and Ali Ahmadov, as well as directors from various
structural units,” the CBA reported.
The bank emphasized that the meeting highlighted the mission's
key observations and preliminary findings. The participants also
exchanged views on improving institutional approaches to strategic
and risk management, enhancing the effectiveness of strategy
implementation and monitoring, and further developing the risk
management framework.
The IMF had previously recommended that Azerbaijan continue
strengthening the banking sector's resilience and improving its
financial supervision system. According to the Fund's assessment,
despite strong bank capital adequacy and profitability, risks
persist regarding high deposit and loan concentration and
significant financial dollarization.
The IMF also called for continued implementation of Basel III
standards, strengthened supervision of systemically important
banks, and improvements to mechanisms for resolving banking issues
and providing emergency liquidity support.
