Regulatory Alerts2025-12-08
Regulation on Liquidity Risk Management in Banks
The Central Bank of the Republic of Azerbaijan issued Resolution No. 49/1 to establish minimum liquidity risk management requirements and standardized indicators for banks and foreign bank branches. The regulation mandates specific liquidity thresholds, including a minimum 30% instant liquidity ratio and phased liquidity coverage ratios reaching 90–100% by December 2027, alongside structured gap analysis, stress testing, and early warning systems. Banks must calculate these metrics using defined high-quality liquid asset classifications, submit monthly prudential reports, and provide daily notifications or 45-day action plans when liquidity thresholds are breached.
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