Stress tests related to climate risks are planned to be conducted in Azerbaijan’s banking sector in the coming years, the Central Bank of Azerbaijan (CBA) told Report.

The bank noted that their implementation is envisaged by the action plan within the Roadmap for Sustainable Finance for 2023-2026.

“First of all, a database for testing will be created, and then the results of these tests will be analyzed to develop appropriate measures. Conducting climate stress tests is an important part of the CBA’s agenda related to ensuring resilience to risks. Preparatory work in this direction will begin in the near future within the cooperation with international partners,” the Central Bank noted.