BAKU, Azerbaijan, January 6. Banks in
Azerbaijan have been given one year to align their capital with
Basel III standards, Trend reports via the Central Bank of Azerbaijan
(CBA).
This issue has been reflected in amendments to "Rules for
calculating bank capital and its adequacy" made by the CBA
Management Board's decision of December 16, 2025, proceeding from
the "Strategy for the development of the financial sector in
2024-2026," in order to strengthen financial stability in the
banking sector and increase compliance with international
regulatory standards.
With the aforementioned amendments, the structure of bank
capital, capital adequacy ratios, capital buffers, and a number of
other requirements and regulations have been aligned with Basel III
standards.
According to the amendments, the introduction of new capital
buffers will increase the resilience of banks to possible losses,
facilitate more accurate risk assessment, and improve the quality
of bank capital, as well as further support the processes of
sustainable financing of the economy.
At the same time, the completion of the process of aligning
capital requirements with Basel III standards will ensure the
strengthening of prudential policy and the control framework, as
well as make a positive contribution to the attractiveness of the
banking sector for international investors.
The banks have been given a one-year transition period to adapt
to the new capital structure and align internal bank rules and
procedures with new regulatory requirements, as well as conduct
necessary training in the sector and integrate new approaches into
prudential reporting. Thus, banks will be required to fully comply
with the new requirements from January 1, 2027.
The relevant changes can be viewed at the following link:
https://e-qanun.az/framework/61125
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