Azerbaijan, Baku, Feb.3 / Trend I. Khalilova /
The Central Bank of Azerbaijan (CBA) plans to introduce a mechanism of compensation to bank managers in 2011 - the first in the world within the measures to improve the quality of bank management, Rashad Orujev, the head of the CBA Credit Institution Supervision Department told Trend today.
"Measures to improve the quality of bank management include issues of corporate management and risk management. On risk management we have more detailed and qualitative rules. The rules for the development of corporate management in banks were adopted in 2004, after adopting the law On Banks. Under the new rules, banks will be putting more qualitative and detailed requirements on risk management," Orujev said.
One of the innovations in this direction will be the adoption of rules on compensation to bank managers.
This will change the philosophy of bank management and bank managers' conduct," Orujov said. Consultations with banks on issuance of bonuses to bank managers have already started. We have our own groundwork and a draft of regulations has been prepared, which must be registered in the Justice Ministry, after which they will enter into force."
According to him, introducing rules on compensation to bank managers will make them work for the long term and it would be a very useful tool in this term.
"Perhaps the CBA will become one of first banks which will introduce this tool that is being discussed today at a global level," Orujev said.