In order to improve the structure of macroprudential policy, the Central Bank of Azerbaijan (CBA), taking into account international experience, has prepared the document “Framework for macroprudential policy in the banking sector.”
As the regulatory body informed Day.Az, the CBA carries out regulation and control of the banking sector, including macroprudential policy, to ensure the stability and sustainability of the functioning of financial markets.
“According to the information, the document reflects the final and intermediate goals of macroprudential policy, directions and processes for its implementation, institutional design, communication. The main goal of macroprudential policy is to protect financial stability and strengthen its sustainability by eliminating the accumulation of systemic risks. The stability and stability of the financial sector are considered the main conditions for long-term stable economic growth. To achieve this main goal, five intermediate goals were identified within the framework of the document.
In international practice, the process of improving macroprudential policy against the backdrop of new challenges and risks continues. For this reason, the document, in addition to the instruments currently used by the Central Bank, also provides information on macroprudential instruments that may be used in the future.
The document of the Central Bank “Framework of macroprudential policy in the banking sector” was discussed in the Committee on Monetary Policy and Financial Stability in December 2024 and approved by protocol decision No. 12 for informing the general public,” the statement said.