BAKU, Azerbaijan, February 4. Following a review of the Banking Industry Country Risk Assessment (BICRA) for Azerbaijan (BB+/Stable/B), S&P Global Ratings revised the industry risk trend to positive from stable, Trend reports.
Furthermore, it was noted that the supervisory authorities have adopted a new corporate governance standard for banks, a regulation restricting related party transactions, and a regulation on liquidity risk management adapted to the Basel III requirements.
"In 2025-2026, the regulatory authorities' plan includes a shift to risk-based supervision, a revision of the capital adequacy framework to comply with Basel III requirements, and a change in the stress testing requirements for banks.
Credit growth in Azerbaijan is highly correlated to oil prices and GDP growth. Loans increased by about 20 percent in 2024, driven by both retail and corporate loans.
It is expected that infrastructure investments and a decline in a key policy rate could result in double-digit lending growth over 2025-2026. Additionally, we estimate that inflation-adjusted property prices rose 10-15 percent last year, to be followed by our expectation of high single-digit growth in 2025,'' the information notes.