BAKU, Azerbaijan, December 19. In a bid to enhance the macroprudential policy framework, the Central Bank of Azerbaijan (CBA) has developed a document titled "Framework of Macroprudential Policy in the Banking Sector," drawing on international experience, Trend reports.
According to a report from the regulatory body, the CBA keeps a watchful eye on the banking sector, pulling the strings on regulation and supervision, including macroprudential policy, to keep the financial markets steady and strong as a rock.
"The document outlines both the final and intermediate goals of the macroprudential policy, its implementation processes, institutional design, and communication strategies. The primary goal of macroprudential policy is to safeguard financial stability and enhance its resilience by preventing the accumulation of systemic risks. The stability and resilience of the financial sector are considered crucial for long-term, stable economic growth. To achieve this primary goal, the document identifies five intermediate objectives.
As global challenges and risks evolve, the process of refining macroprudential policies continues internationally. Therefore, the document also introduces information on macroprudential tools that may be implemented in the future, in addition to the instruments currently used by the CBA.
The document, 'Framework of Macroprudential Policy in the Banking Sector,' was discussed in the Committee on Monetary Policy and Financial Stability in December 2024 and approved by decision No. 12 to inform the general public," the report said.
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