Baku, Azerbaijan, Aug. 8
By Eldar Janashvili - Trend:
Azerbaijan's Financial Market Supervisory Authority has approved "Banking Corporate Governance Standards", Trend reports.
The purpose of implementing these standards is to create a reliable, transparent management and reporting system in banks, as well as to ensure effective internal control and risk management of corporate governance based on legal requirements.
For effective and reliable management of a bank, shareholders and administrators should organize and implement the strategic planning process; create an effective management and organizational structure in accordance with the strategic vision; develop policies for effective management and control, including the definition of accounting policies and the implementation of the budget planning process.
It is also necessary to ensure compliance of financial statements with international standards, the existence of effective systems of internal control and risk management;
The bank administration must timely provide users with objective and complete information reflecting the activities of the bank; ensure the creation and continuous development of a reliable information management system that continuously informs about the current financial condition and operations of the bank;
The corporate governance standards also stipulate the full and timely disclosure of direct and indirect interests of the bank in order to avoid a possible conflict of interests. Administrators should also give priority to the interests of the bank over their own. Persons associated with the bank must prevent any actions that could lead to a deterioration in the financial position of the bank and must comply with the legal acts governing banking activities.