Regulatory Alerts2026-02-17
Corporate governance standards in banks
The Central Bank of the Republic of Azerbaijan issued Resolution 41/11 to establish comprehensive corporate governance standards for all domestic and foreign bank branches, mandating robust management structures, strategic planning, and integrated risk oversight. The resolution requires banks to maintain a Supervisory Board with at least one-third independent members, implement clear fiduciary duties and ESG risk management frameworks, and ensure transparent reporting alongside effective internal control systems. By standardizing board composition, strategic decision-making, and ethical conduct rules, the framework enhances long-term financial stability, aligns banking operations with international best practices, and strengthens accountability across all management levels.