Real sector monitoring (RSM)

Monitroring of enterprises is defined as an informative-analytical tool linking the real and banking sectors to influence performance of enterprises and make effective decisions in harmony with the economic policy of the government.

Monitoring of enterprises by banks generally serves for the following objectives:

• evaluate financial stance of enterprises and organisations, analyse and forecast economic conjuncture based upon demand and supply swings at the microeconomic level and formulate data on investment environment;
• evaluate the effectiveness of the implemented monetary policy given real development of the economic processes on the country level;
• evaluate possible systemic risks of swings in the real sector on the banking system;
• extensively use the RSM statistic data in research and educational-scientific spheres upon their collection and processing;

Banks get a chance to obtain information as a result of implementation and consolidation of these activities in order to identify how optimum and risky the credit performance in the relevant sector of the economy is. Firms (enterprises), in their turn, are allowed to make decisions on investment, production and borrowing through analysis of the economic situation in the sector they are engaged in. At present, indices resulted from the RSM are of huge interest for players of the stock exchange and potential investors.

The key phase of the RSM system contains the processing of the data from surveys, observation of economic processes and estimation of necessary indicators.

Business tendency surveys are primarily conducted via qualitative surveys; they cover evaluation of the current stance of the country economy by managers, tracking of growth trends and development of economic – analytic analyses and short-term forecasts and study of cause and effect of economic processes. What makes findings of qualitative surveys advantageous is that results may be generated prior to announcing sectoral qualitative (statistic) indicators. Another advantage of qualitative indicators is that results are easily available. Tendencies of the economic conjuncture are observed and short-run expectations of vendors are evaluated through qualitative surveys.

Moreover, reviews, hosting various type economic indicators that are disclosed to the enterprises monitored, are developed to intrigue respondent enterprises and have their feedback. These reviews may be a vital data source on market competition, investment and growth trends for the management of enterprises when taking management decisions.

Azərbaycan Respublikasının Mərkəzi Bankı 20 ildə