Central Bank approved Supervision Technology Roadmap

20-02-2025

20 February 2025, Baku: The Central Bank of the Republic of Azerbaijan (CBAR) is successfully continuing implementation of initiatives aligned with the strategic goals set within the "Financial Sector Development Strategy for 2024-2026". As part of the initiative CBAR approved The Supervision Technologies Roadmap, which was jointly developed by the CBAR and the World Bank Group within the framework of the Financial Sector Modernization Project-3 (FSMP-3).

The Roadmap includes the portfolio of supervision technologies (SupTech) projects and initiatives planned by the CBAR for 2024-2029 and the contribution of the implementation of SupTech, by defining the strategic framework for the development of this direction.

SupTech aims to identify prospects for the use of technology and data for risk-based supervision purposes. The implementation of SupTech tools will improve supervisory efficiency, enhance the quality of reporting by regulated entities, ensure compliance with regulatory requirements, and potentially strengthen the stability of the financial system. In parallel, SupTech will play a key supporting role in achieving the implementation of a risk-based supervision approach in accordance with the Risk Based Supervision Policy Concept approved by the CBAR, which is the main strategic goal of the CBAR in the supervision area.

The implementation of the Roadmap will also support the achievement of the following goals set out in the CBAR's "Financial Sector Development Strategy for 2024-2026":

• Improving supervisory processes through the implementation of data based SupTech solutions
• Implementation of a supervisory information system

For a brief overview of the Roadmap please visit:

https://uploads.cbar.az/assets/f8bff501a49f02fc9272df311.pdf