Azerbaijan Central Bank Expands Risk Framework Beyond Banking Sector
What happened
The Central Bank of Azerbaijan announced plans to extend its risk evaluation approach from the banking sector to other parts of the financial sector in Azerbaijan. The Central Bank's executive director stated that assessing banks based solely on capital and liquidity indicators is no longer sufficient for identifying risks.
From trend.az
Why it matters
The new, proactive regulatory framework aims to identify risks in advance, including those posed by cyberattacks and violations of international sanctions. This expansion will allow for the evaluation of financial institutions based on the quality of their corporate governance and internal control systems.
From trend.az
Who's involved
- central bankThe public institution managing Azerbaijan's currency and financial system
- AzerbaijanThe geopolitical state where the Central Bank operates
- World BankAn international financial institution involved in cooperation
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The entities involved
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Azerbaijan
country in the Caucasus in Eastern Europe and Western Asia
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central bank
public institution that manages a state's currency, money supply, and interest rates
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World Bank
international financial institution
Related events
- Toghrul Aliyev has been appointed as Deputy Chairman of the Central Bank of Azerbaijan.
- Azerbaijan's fintech sector is expanding and being regulated by the Central Bank, with efforts to cooperate with the EU.
- Kapital Bank, a financial institution, serves customers in Azerbaijan.
- Azerbaijan's central bank directed revenues into reserves to ensure economic stability.
- Azerbaijan serves as a Middle Corridor hub connecting Central Asia and the South Caucasus region.