Azerbaijan will form new framework for prudential risk-based supervision of banks

Business Materials 21 July 2011 21:02 (UTC +04:00)

Azerbaijan, Baku, July 21 / Trend N.Ismayilova /

The Strategic Plan for 2011-2014 of the Central Bank of Azerbaijan (CBA) provides for a new framework for the prudential risk-based supervision in accordance with best practice, the CBA reported.

The fulfillment of this objective will consist of two stages - completion of the formation of a new architecture of risk-based supervision system, as well as the formation of the procedures for its implementation.

To complete the formation of the new architecture of risk-based supervision system, there will be developed some concept, legal framework for the management of banking risks will be established, methodology for assessing the major categories of risk will be developed and internal control systems of risk management in banks will be assessed.

Certain new regime of prudential supervision over the banking system will be established, its systematization will be secured and new procedures for the internal business processes of banking supervision will be developed to form the procedures of implementation of risk-based supervision.