The survey was commissioned by the IFC and conducted by local Sigma research firm. Charles Canfield, Manager of the IFC Corporate Governance Project in Azerbaijan, said 34 of 44 banks in Baku and 100 of 1,800 firms in Sumgait and Ganja were surveyed.

Compared to the firms, the banks advanced more in corporate governance practices while they both need further improvement, the poll concluded.

The survey covered banks, most of which were established between 1989 and 1994 and firms, 89% of which became open joint-stock companies after privatization.

The survey said internal audit is carried out in 91% of the banks and 12% of the firms.

The Azerbaijan Corporate Governance Project (ACGP) was officially announced on May 8, 2003 at the "Investing in Azerbaijan - Gateway to the Newly Independent States" conference in Baku, Azerbaijan. The project (July 2004 through June 2007) is implemented by the IFC with financial support from the State Secretariat for Economic Affairs of Switzerland (SECO).

The objective of the project is to assist Azerbaijani joint stock companies, including banks, to improve their corporate governance practices. The project works with companies on the issues of protecting shareholders' rights, improving transparency and disclosure policies, and implementing other best practices in corporate governance. To achieve these goals the project holds training events and seminars for managers and board members of companies.

The project also works with the Azerbaijani government authorities to improve the legislative framework related to corporate governance.

The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.

The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses.

The State Secretariat for Economic Affairs is the Swiss Confederation's competence center for issues related to the economic policy. Its aim is to create the basic regulatory and economic policy conditions to enable business to flourish for the benefit of all. It represents Switzerland in large multilateral trade organizations and international negotiations. It is also involved in efforts to reduce poverty and help developing countries with transition economies build sustainable democratic societies and viable market economies. Each year Switzerland spends approximately 1.9 billion francs on development cooperation and transition assistance to countries. APA-Economics