(MENAFN- Trend News Agency) BAKU, Azerbaijan, October 1. The improvement of the regulatory framework in the banking sector continues in Azerbaijan, Director General of the Central Bank of Azerbaijan (CBA) Shahin Mahmudzada said during the presentation of the report on financial stability for the first half of 2024, Trend reports.

“The regulations governing transactions with individuals associated with banks have been revised. The changes aim to enhance safety and transparency in transaction execution, mitigate risks, and bolster the resilience of the banking system. Additionally, modifications have been implemented in the credit risk management procedure. This addresses the enhancement of life insurance terms for consumer loans and the reinforcement of oversight regarding the risks linked to loan provision,” he emphasized.

Mahmudzada noted that the third crucial step was to put the pedal to the metal on requirements that guarantee information security in both 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 sustainable finance principles was approved. It is aimed at integrating sustainability strategies into banks' corporate governance, increasing transparency in accounting and reporting, and effective risk management,” he added.

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