Azerbaijan's Banking Sector Holds 94% Of Financial Assets - Central Bank

(MENAFN- Trend News Agency) 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.

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