BAKU, Azerbaijan, October 13. Azerbaijan plans
to introduce a minimum prudential requirement for banks' Net Stable
Funding Ratio (NSFR) in 2027.
This was stated in the Financial Stability Report published by
the Central Bank of Azerbaijan (CBA).
According to the report, the Central Bank began collecting
quarterly data on banks' NSFR in 2026 to encourage long-term
liquidity management in the banking sector.
To this end, the CBA developed a methodology for calculating the
NSFR and the relevant reporting forms. The data submitted by banks
is being reviewed and verified, while banks are also receiving the
necessary methodological support and guidance.
The report also noted an increase in the loan-to-deposit ratio.
In the first half of 2026, this indicator rose by 2 percentage
points compared with the end of 2025, reaching 80%.
Although both loan and deposit portfolios expanded, the loan
portfolio grew 1.5 times faster than the deposit portfolio,
contributing to the increase in the loan-to-deposit ratio.
