Regulatory Alerts2024-09-11
Methodology Guide on the Development and Application of Bank Recovery Plans
The Central Bank of the Republic of Azerbaijan issued this Methodology Guide to require banks to develop, approve, and annually update recovery plans that mitigate operational risk and safeguard financial stability. The framework mandates banks to establish internal governance rules, define early warning and recovery indicators, simulate stress scenarios, and implement predefined measures to restore financial standing during crises. Upon assessment, the Central Bank evaluates plan adequacy, issues binding instructions or recommendations, and centrally manages public disclosure to enhance market transparency.
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