OREANDA-NEWS. December 30, 2010. The Central Bank of Azerbaijan has issued a statement on the basic principles of the policy of monetary and financial stability in 2011.

The statement says that an objective of monetary policy in banking sector regulation is to diversify the financial system for further strengthening of financial stability.

In 2011, the CBA’s policy on financial stability in the banking sector will be aimed at ensuring the adequacy of capital; maintaining an optimal level of liquidity; and implementing the restructuring.

The Bank will seek the optimum balance between the regulatory and supervisory measures and stability. The CBA relates healthy financial intermediation, based on long-term sources of funding base and enhancing the role of capital markets, to stable and sustainable sources of growth in the banking sector.

Stable and sound development of the banking system will be provided by prudential regulation and supervision for the constant adaptation to new global challenges. The micro-prudential supervision tool (individual control over institutions) will be introduced to establish more effective control over risks. Realization of other tools offered in the third part of the rules of the Basel Committee on Supervision will also be launched.