BAKU, Azerbaijan, April 28. The Central Bank of Azerbaijan (CBA) has defined its next priorities for the banking sector in the “Report on the Implementation Status of the Financial Sector Development Strategy for 2024-2026 for 2025,” Trend reports, citing the CBA.
The planned measures include improving supervisory processes in line with a risk-based regulation and control model, as well as enhancing the banking supervision framework’s compliance with Basel principles, including the introduction of long-term liquidity management requirements.
The Central Bank also plans to strengthen the legal and regulatory framework for banking resolution, prepare requirements for the implementation of the Internal Capital Adequacy Assessment Process (ICAAP), and provide support to banks.
Among the key priorities are strengthening the institutional capacity of non-bank credit organizations (NBCOs), expanding alternative financing opportunities, and developing a framework for consolidated regulation and supervision.
In addition, the Central Bank intends to create and adapt regulatory mechanisms for alternative financial instruments and introduce selected supervisory technology (SupTech) solutions.
One of the goals includes assessing prospects for expanding access to Islamic banking products and increasing financing opportunities for agricultural companies, with a particular focus on micro, small, and medium-sized enterprises.
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