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Central Bank: New macroprudential tools covering ESG risks to be developed by the end of the year

Director of the Central Bank of Azerbaijan Shahin Mahmudzade

16 June 2026 13:10 (UTC +04:00)

The Central Bank of Azerbaijan plans to develop new macroprudential tools by the end of the year to ensure more effective management of ESG (environmental, social and governance) risks in the financial system, Director of the Central Bank of Azerbaijan Shahin Mahmudzade said at the session titled “8th SDG Dialogue: Innovative Financing for Sustainable Development – Beyond Aid and Traditional Official Development Assistance (ODA)” held within the framework of the Islamic Development Bank Annual Meetings in Baku, APA-Economics reports.

According to him, these tools will ensure the integration of ESG risks into capital planning and will play an important role in aligning with international regulatory standards, including the updated Basel principles.

“At the same time, transition risks will be incorporated into the stress testing framework by the end of the year,” he added.

Central Bank of Azerbaijan ESG environmental social governance Shahin Mahmudzade macroprudential tools financial system sustainable finance risk management Basel principles capital planning transition risks stress testing Islamic Development Bank IsDB Annual Meetings SDG Dialogue Azerbaijan banking sector financial regulation Baku