2024-10-01 09:24:49
The Central Bank of Azerbaijan held a presentation financial stability report for the first half of 2024reports Day.Az with reference to Trend.
As the Director General of the Central Bank of Azerbaijan said Shahin Mahmudzadethe macroeconomic situation in Azerbaijan shows positive trends.
“The global macroeconomic environment is being formed under the influence of a number of factors, including ongoing geopolitical tensions, expectations of lower interest rates in Europe and the United States, and a slowdown in global growth in prices for goods and raw materials. In the context of weakening global demand, there is an increase in inflation risks, which requires additional attention to issues of stability. Against the background of these external challenges, the internal macroeconomic situation in Azerbaijan continues to grow due to the non-oil sector, and the real effective exchange rate of the national currency remains stable. Increased employment and income of the population also contribute to the strengthening of financial stability. and the growth of strategic foreign exchange reserves create an additional margin of safety,” he noted.
According to him, the country’s authorities pay special attention to improving the well-being of citizens.
“The government and the Central Bank are taking measures to support economic growth through fiscal and monetary policies aimed at ensuring the sustainability of the economy,” Mahmudzadeh added.
He said that in the first half of this year, the stability of the financial sector of Azerbaijan has further strengthened.
“During the reporting period, the banking sector continued to maintain its dominant role, occupying 94.6 percent of the country’s entire financial sector,” Mahmudzade emphasized.
He stated that Azerbaijan continues to improve the regulatory framework in the banking sector.
“Firstly, the rules for conducting transactions with persons associated with banks have been updated. The purpose of the changes is to provide safer and more transparent conditions for performing transactions, reduce risks and increase the stability of the banking system. Secondly, changes have been made to the procedure for managing credit risks. This concerns the expansion of life insurance conditions for consumer loans, as well as strengthening control over the risks associated with the provision of loans,” he emphasized.
Mahmudzade noted that the third important step was the adoption of requirements for ensuring information security in banking and non-banking credit organizations.
“The innovations are aimed at strengthening data protection and minimizing cybersecurity threats. Finally, a document on the implementation of the principles of sustainable finance was approved. It is aimed at integrating sustainable development strategies into the corporate governance of banks, increasing transparency in accounting and reporting, as well as effective risk management,” – he added.
Mahmudzade reported that in the first half of this year, financial sanctions totaling 135,609 manats were applied in Azerbaijan.
“In the first half of this year, 18 inspections and 47 control measures were carried out in the financial sector. As a result of the recorded violations, financial sanctions totaling AZN 135,609 were applied. In addition, tough measures were taken against 37 entities, which included the cancellation of licenses , suspension of their actions or imposition of restrictions on their activities,” he emphasized.