BAKU, Azerbaijan, October 1, 2024 – Azerbaijan’s banking sector is undergoing significant legal and regulatory improvements, according to Shahin Mahmudzada, Director General of the Central Bank of Azerbaijan (CBA). Speaking during the presentation of the financial stability report for the first half of 2024, Mahmudzada highlighted key changes aimed at boosting safety, transparency, and resilience in the sector.
“The regulations governing transactions involving individuals connected with banks have been revised to ensure safer and more transparent transactions. These changes also aim to mitigate risks and strengthen the overall stability of the banking system,” Mahmudzada stated.
Additionally, improvements have been made in credit risk management, focusing on enhancing life insurance terms for consumer loans and tightening oversight of loan-related risks.
A third major development is the strengthening of information security requirements for both banking and non-banking credit organizations. “These innovations are designed to protect data more effectively and reduce cybersecurity threats,” Mahmudzada said.
Furthermore, the CBA has approved a document focused on implementing sustainable finance principles. This initiative seeks to integrate sustainability strategies into corporate governance, enhance transparency in accounting and report
