Shahin Mahmudzade, Director General of the Central Bank of Azerbaijan (CBA), announced that the integration of ESG and climate risks into the prudential framework will be completed by the end of this year.
He made the statement during the 8th DIM Dialogue at the 51st Annual Meeting of the Islamic Development Bank (IsDB) Group in Baku.
He expressed hope that macroprudential tools ensuring the inclusion of climate risks in capital planning would be finalized by year-end.
This step is crucial for aligning with updated Basel standards. Additionally, the integration of transition risks into the stress-test framework will also be implemented by year-end.
