BAKU, Azerbaijan, April 26. Comprehensive inspections in five banks, four non-bank credit organizations and Azerpost LLC, as well as thematic inspections in four banks, were carried out in 2022 by the Central Bank of Azerbaijan, Trend reports with reference to the annual report of the CBA.
According to the report, against the background of uncertainty caused by complex geopolitical processes, the banking sector continued to function stably.
During the reporting period, the CBA conducted comprehensive inspections of four insurance companies, one insurance agent, and two insurance and reinsurance brokers.
The capital and liquidity figures of the banking sector significantly exceeded the standards and profitability indicators. And as part of the goals of macroeconomic and financial stability, the loan portfolio increased, which contributed to economic activity.
Moreover, credit risks in the banking sector, trends in the foreign exchange market and dollarisation processes were regularly monitored, as well as payment channels, which increased their relevance as a result of the influence of geopolitical processes. Moreover, the current financial condition of banks was also assessed.
"As a result of the effective use of control tools, the financial stability of banks was maintained, and public trust in the banking sector increased," the report says.
According to CBA's report, the liquidity and foreign exchange position of the International Bank of Azerbaijan (IBA) is also monitored on an ongoing basis.
"The problem of the foreign exchange short position of the International Bank of Azerbaijan OJSC, which has arisen since 2016, was solved through the sale of currency by the Central Bank in early July of 2022 and brought into compliance with the regulatory requirement," the report says.
The sale of $236 million worth of foreign currency by the CBA contributed to the closure of the open currency position of the IBA. In turn, the CBA sold the currency for this amount from its reserves.