11:14 - 26.09.2024

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September 26, Fineko/abc.az. With the introduction of changes to the "Standards of Corporate Governance in Banks", the Central Bank will need to present a strategic vision and mission statement not only to the General Meeting of Shareholders, but also to all shareholders.

ABC.AZ reports that this decision was signed by the CBA chairman of board on September 12, 2024.

According to Subparagraph 3.4 of this decision, each bank defines its strategic vision and, based on it, prepares a mission statement for the period of strategic planning. The bank's strategic vision and mission statement are approved by the Supervisory Board and provided to the bank's shareholders for awareness.

In accordance with Sub-clause 3.5, the bank's strategic plan should be prepared on the basis of the strategic vision and mission statement. The Strategic Plan is approved by the Supervisory Board. The strategic plan covers at least a three-year period, after the end of each year, the strategic plan is reviewed based on the results of the previous year and when the bank's business profile changes, as well as when situations and threats in the external environment affect the bank's activities, appropriate changes are made to the strategic plan. The Strategic Plan and the changes made to it are transmitted to the bank's shareholders and the Central Bank for information within 30 (thirty) days from the date of approval. The Strategic Plan reflects the bank's strategic vision, mission statement, risk analysis, development priorities and types of implemented activities, strategic goals and an action plan for them, organizational structure and financial forecasts necessary for the implementation of the Strategic Plan.

According to the added Subparagraph 7.6.7, the Bank's shareholders cannot be members of the Audit Committee, the Risk Management Committee, the Corporate Governance Committee and the Compliance Committee (if established).

Thus, it is noted that Subparagraph 7.6.7 of these Standards does not apply until September 8, 2025 to shareholders who are members of the Risk Management Committee, the Corporate Governance Committee and the Compliance Committee (if established), owning up to 10 (ten) percent of the bank's capital.