Baku, Azerbaijan, Dec.30
By Azad Hasanli - Trend:
In 2015, Azerbaijan will create a framework for the regulation of operational risks, said the statement of the Central Bank of Azerbaijan (CBA) on the main directions of monetary policy and financial stability for 2015, published Dec.30 in the official press.
It is reported that the operational risks will be taken into account when calculating the capital adequacy of banks.
"In 2015, the Central Bank will continue measures to improve the stability of the banking sector for potential risks and to limit risks in a preventive mode," said the statement. "The processes of consolidation in the banking system will be also continued. The issue of choice of control limits in accordance with the risk profile of systemically important banks will remain in the focus and the arrangements will be made for the restructuring, if necessary."
In 2015, requirements for quality of the management, competency of the management, technical and staff potential will also be increased, measures on the integrated application of the standards of corporate management to enhance the internal capacity of banks in risk management will be taken, according to the document.
"In 2015, improvement of banking supervision will be continued taking into account the system of Basel III and characteristics of the local environment," said the statement. "Measures to establish a political model that will allow implementing countercyclical and prudential regulation on the basis of risks will be continued, the possibilities of using new prudential instruments of controls to prevent the growth of risks in the banking sector will be studied."
The central bank also plans to carry out activities to rebalance the structure of the loan portfolio and restrained lending activity of banks to maintain the quality of sector assets. In addition, the activities to regulate the growth of consumer credit in order to bring the dynamics of crediting to the economic development strategy will be continued.
"The system of protection of the interests of consumers of financial services will be strengthened as part of activities aimed at increasing confidence of public and the corporate sector for the banking system," said the statement.
In 2015, the CBA will strengthen efforts to improve financial literacy of the population. It is expected that a financial education portal will play a special role in it.
Holding mass activities with various organizations will be also continued in this area, new products and services to educate the population in this area will be prepared.
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