Baku, September 30, 2025
Lending and deposits in Azerbaijan’s banking sector continued to expand through early September, though currency indicators showed mixed trends, according to fresh data from the Central Bank of Azerbaijan (CBA).
Lending Growth
Total credit in the economy stood at 30.46 billion manats as of September 1, up 0.7 percent from the previous month, 4 percent higher than at the start of the year, and 10.2 percent above the level a year earlier.
Private banks accounted for the bulk, with 21.28 billion manats (69.9 percent of the total), an annual increase of 9.9 percent. State-owned banks held 7.42 billion manats in loans, up 10.5 percent year-on-year, while non-bank credit institutions (NBCIs) reached 1.76 billion manats, an 11.8 percent rise.
Deposit Dynamics
The sector’s deposit portfolio totaled 41.44 billion manats, slightly down 0.8 percent month-on-month but 2.9 percent higher since January and 10.8 percent above the year-earlier figure. Non-financial organizations held 22.77 billion manats (55 percent of the total), up 8.5 percent in annual terms.
Household deposits rose 9 percent year-on-year to 15.46 billion manats, while deposits of financial institutions jumped 44 percent to 3.21 billion manats. Short-term deposits reached 22.41 billion manats, up 2 percent, while long-term deposits climbed 23.3 percent to 19.03 billion manats.
Currency and Assets
The nominal effective exchange rate of the manat was 102.7 points on September 1, edging up 0.9 points from August but down 6.5 points since the start of the year. The real effective rate measured 114.7 points, 0.9 points lower than a month earlier.
Net foreign assets of Azerbaijani banks totaled 27.0 billion manats, up 1.9 percent from August and 6.4 percent from a year earlier. Net domestic assets stood at 20.76 billion manats, down 2 percent from the prior month but up 5.7 percent year-on-year. Overall bank assets amounted to 55.67 billion manats across 22 institutions.
Currency Turnover
The velocity of the manat was reported at 3.38 points, down slightly from both August and the beginning of the year.
