August 9, 2025 | Baku, Azerbaijan
International ratings agency Moody’s Ratings expects Azerbaijan’s banking sector to maintain solid performance over the next 12 months, supported by a resilient economy and strengthened regulation.
Speaking to Report, Lev Dorf, Associate Managing Director at Moody’s Ratings, said the agency maintains a positive outlook for the sector in 2025. “Favorable economic conditions, particularly steady growth in the non-oil economy, are creating a supportive operating environment for banks. This fosters loan growth, strong profitability, and reduced systemic risks,” he noted.
Dorf emphasized that post-2015 crisis reforms — including stricter consumer lending rules, a ban on foreign currency loans to individuals, and tougher prudential standards — have boosted resilience, preparing banks for shocks such as the 2020–2022 pandemic.
Moody’s highlighted ongoing improvements in corporate governance, the rollout of Basel III standards, additional capital buffers, and enhanced liquidity coverage requirements, especially for systemically important banks.
As of July 1, 2025, Azerbaijan’s banking sector assets totaled 56.73 billion manats, up 12.7% year-on-year. Liabilities rose 12.9% to 49.79 billion manats, including a 6.2% increase in deposits to 37.35 billion manats. Sector equity grew 11.3% to 6.95 billion manats.
