Improving Risk-Based Supervision Tools and Technics for Central Bank of Azerbaijan

Abstract

Financial regulatory agencies — regulatory agency regulating and supervising of financial institutions Bank supervisor - employees of Banking Supervision Department of the regulatory agency assessing risk profile of specific bank Systemic importance of a bank - is determined by its' potential negative impact on a banking system in case of bankruptcy (or serious business difficulties etc.) Systemic risk- A systemic risk is a risk that an event will cause a loss of confidence in the financial system that might generate adverse consequences for the financial system and real economy CAMEL - An international bank-rating system where financial regulatory agency assess and rate banks per five factors: C - Capital A - Asset M - Management E - Earnings L - Liquidity