Financial management, reporting and internal control processes

1. In accordance with the corporate governance standards, financial reporting and controls, internal control processes are established in Xalq Bank.

2. The Bank maintains its accounting and submits reports in accordance with the legislation of the Azerbaijan Republic and normative acts of the Central Bank of Azerbaijan Republic.

3. When implementing a system of effective financial management the Bank is guided by the following principles:

  • Simplicity and clarity for understanding of reports;
  • Frequency and timing of reporting should not interfere with the working time of the Bank’s divisions;
  • Reports should be directly related to activity of divisions;
  • Decline useless reporting;
  • Eliminate duplication in the reports.

4. The Bank within the terms and in the manner established by the Central Bank of Azerbaijan, in order to evaluate the Bank’s financial condition,  presents to the Central Bank its prudential reports and reports of banking statistics.

5. The Bank prepares the following reports:

  • Prudential report;
  • SD report;
  • Auxiliary report;
  • Balance of payments;
  • Report of provision fund;
  • Report of operations on the movement of capital;
  • Report of term liabilities attracted from non-residents;
  • Report on cash transactions.

6. The reports on financial and economic activities of the Bank (except the data protected by the Law) in accordance with rules of the Central Bank of Azerbaijan posted in media.

7. In order to ensure effective financial control, the Bank systematically analyzes the situation and forecasts economic processes. For these purposes, there is a functional unit in the Bank which is responsible for:

  • Control over the execution by structural units and the whole Bank of the approved budget;
  • Financial analysis of the Bank, based on the information gathered from all the structural units;
  • Implementation of control over operations with bank accounts;
  • Collection and analysis of statistical data to evaluate profitability and cost control of departments and branches and sending these reports to the Executive Board;
  • Evaluation of rationality of assets and liabilities’ management strategy.

In accordance with the terms established by current legislation of Azerbaijan, the Bank is preparing Annual Report for submission to the Central Bank of Azerbaijan,  covering its annual activity and financial state (financial year is Jan1 - Dec 31 of calendar year). The reports approved by the external auditor and consolidated financial statements together with the auditor's report submitted to the Central Bank of Azerbaijan and posted on Xalq Bank's website.