BAKU, Azerbaijan, April 15. The primary priorities of the financial stability policy pursued by the Central Bank of Azerbaijan (CBA) last year focused on maintaining trust in the financial-banking system, minimizing risks, strengthening management capacity in the financial sector, and enhancing resilience to shocks, the CBA said in a statement, Trend reports.
The macroprudential policy, regulatory, and supervisory measures implemented throughout the year ensured stable operations across all segments of the financial sector, further reinforcing the stability of the financial system.
CBA stated that during the reporting year, the bank approved and publicly released two key documents: the macroprudential policy framework for the banking sector and the concept of the "Risk-Based Supervision Policy."
"In 2024, the financial intermediation function of the banking sector deepened further, and active lending activities continued. The expansion of balance sheets, supported by what is considered more sustainable funding—term deposits—was driven by growing confidence in the banking sector, the newly introduced operational framework of monetary policy, and the macroprudential policy framework. Alongside the growth of the credit portfolio, improvements in the regulatory framework and more effective risk management by credit institutions contributed to a reduction in credit risks," the CBA said.
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