Regulatory Alerts2025-04-28
Criteria for Assessing a Bank as Systemically Important
The Central Bank of the Republic of Azerbaijan has issued Decision No. 11 to establish quantitative criteria and specific weights for identifying systemically important banks operating in the country. The framework evaluates institutions across four categories—size, interconnectedness, substitutability, and complexity—and calculates a systemic importance index using annual average indicators compared against a 420 basis point threshold. Banks exceeding this threshold are formally designated by the Management Board annually, with official lists published on the Central Bank’s website and notified to relevant institutions within five business days.
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