Approved by Board decision of National Bank of the Azerbaijan Republic of November 3, 2004 No. 19

Rules of application of standards of corporate management in banks

1. General provisions

1.1. These rules are prepared according to the Laws of the Azerbaijan Republic "About banks", "About National Bank of the Azerbaijan Republic", other regulatory legal acts of the Azerbaijan Republic, including recommendations of "Enhancement of Corporate Management in Credit Institutions" Basel Committee on Banking Supervision and determine rules of application of standards of corporate management in banks, considering experience of the international corporate management.

1.2. The main objective of these rules consists in ensuring application of high standards of corporate management in banks. These standards determine bases of organizational structure, activities and corporate behavior of bank.

1.3. Each bank shall approve execution of provisions of these rules with amount and features of activities of the transactions

1.4. For ensuring appropriate level of application of corporate standards of management shareholders and administrators of bank should provide the following:

1.4.1. organization and implementation of strategic planning process;

1.4.2. creation of productive organizational structure;

1.4.3. implementation of process of financial planning;

1.4.4. availability of productive internal control system and reporting;

1.4.5. timely provision of the exact, complete and impartial information reflecting activities of bank;

1.4.6. creation of the systems managing risks;

1.4.7. availability and development of the reliable management information systems providing systematic flow of vast and clear data on the current financial position and transactions;

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