Recommendations on Corporate Governance Standards for Banks approved

27-09-2024

Baku, September 27, 2024: The Management Board of the Central Bank of the Republic of Azerbaijan, by its decision dated September 12, 2024, approved the Recommendations on Corporate Governance Standards for Banks.

This document sets out the Central Bank’s future strategic view on the regulation of corporate governance in banks. Based on the document, which was prepared taking into account international corporate governance practices, it is recommended to increase the functionality of independent members of the Supervisory Board, as well as to ensure gender diversity in its composition. Recommendations were also made to evaluate the composition and activities of the Supervisory Board and its committees, to improve the banks' audit and compliance functions, to clarify the division of responsibilities among the lines of defense in risk management, and to ensure transparency.

It should be noted that the main purpose of the Recommendations is to strengthen corporate governance in banks in order to support the efficient functioning and stability of the banking sector and to further align the corporate governance framework of banks with international standards.