BAKU, Azerbaijan, October 15. Azerbaijan's
banking sector accounts for 94% of the country's financial sector
assets, Atakhan Hasanov, director of the Financial Stability
Department at the Central Bank of Azerbaijan (CBA), said at a press
conference presenting the Financial Stability Report, Trend's correspondent reports
from the event.
He said the country's financial sector assets increased by 7% in
the first half of 2026, reaching 64.9 billion manat ($38.1
billion).
“All segments of the financial sector recorded growth during the
period. However, the banking sector holds a dominant position,
accounting for 94% of the financial sector,” Hasanov said.
According to him, banking system assets rose by 6.8% to 61
billion manat ($35.8 billion) during the reporting period. Term
deposits held by individuals played a significant role in this
growth, increasing by 10% in the first six months of the year.
The number of individuals holding deposits with banks also
increased, reaching 221,000, up 13.6% from the same period last
year, the department director said.
Hasanov noted that the banking sector's total capital stood at 7
billion manat ($4.1 billion), an annual increase of 600 million
manat ($352.9 million). The sector's capital adequacy ratio was
17.7%.
He added that capital requirements are scheduled to be aligned
with Basel III standards from January 1, 2027. The changes are
intended to strengthen the resilience of the banking sector.
According to the CBA official, non-performing loans in the
banking sector total approximately 1 billion manat ($588.2
million), accounting for 3% of the overall loan portfolio. The
share of restructured assets in banks' loan portfolios is also
continuing to decline.
Furthermore, Hasanov emphasized that the increase in
non-performing loans was mainly observed in trade, services, and
agriculture. Analysis indicates that the rise is linked to
individual customers and does not pose a systemic risk.
