Azerbaijan, S&P Global Ratings Discuss Banking Sector Issues (PHOTO)

(MENAFN- Trend News Agency) BAKU, Azerbaijan, November 6. The Central Bank of Azerbaijan (CBA) has discussed developments in the country's banking sector and emerging industry trends with a delegation from S&P Global Ratings.

The meeting was held at the CBA and brought together representatives of the international rating agency responsible for financial services and sovereign ratings, according to the central bank.

"The parties also reviewed measures implemented by the Central Bank to improve prudential regulation and risk-based supervision, addressed issues of financial stability, and discussed initiatives planned for the upcoming strategic period. Furthermore, the focus was on the country's macroeconomic situation, the impact of regional developments on Azerbaijan's economy, and matters related to the monetary policy transmission mechanism," the CBA reported.

Earlier, S&P Global Ratings gave a positive assessment of the performance of the CBA leadership over the past four years.

According to the agency's report, the country's banking system remained stable throughout 2024–2025, with the regulator implementing a series of measures to enhance banking supervision and regulation. Specifically, these included the introduction of corporate governance standards, liquidity management requirements in line with Basel III, and new rules for managing operational and market risks, as well as the strengthening of prudential reporting requirements for banks.

S&P also noted that in March 2025, the CBA activated a countercyclical capital buffer of 0.5% to mitigate risks associated with rapid credit growth. Among the regulator's future priorities, the agency highlighted the implementation of risk-based supervision, the transition to IFRS 9, and the strengthening of stress-testing frameworks.

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