The Central Bank of the Republic of Azerbaijan has approved the Rule on Management of Market Risks in Banks, establishing a unified set of requirements for how banks identify, measure, monitor and manage market risk in line with Basel III and the 2024–2026 Financial Sector Development Strategy. The rule covers governance and framework expectations for banks’ market risk management systems, policies and procedures, and sets out measurement methods, monitoring and reporting requirements across key market risk types, including interest rate, foreign exchange, equity and commodity risk. It also provides for advanced approaches to managing interest rate risk in the banking book (IRRBB), aiming to support more accurate risk identification and measurement.
Central Bank of the Republic of Azerbaijan 2026-01-13
Central Bank of the Republic of Azerbaijan approves Basel III-aligned market risk management rule for banks
The Central Bank of the Republic of Azerbaijan has approved the Rule on Management of Market Risks in Banks, aligning with Basel III and the 2024–2026 Financial Sector Development Strategy. The rule outlines governance, framework expectations, and measurement methods for managing interest rate, foreign exchange, equity, and commodity risks. It also introduces advanced approaches for managing interest rate risk in the banking book (IRRBB).