BAKU, Azerbaijan, October 22. Since 2021, total
assets of Azerbaijan’s banking system have increased at a compound
annual growth rate of 11%, says Moody’s.
“As of 29 September 2026, the Azerbaijan banking system
consisted of 21 banks. As of 31 August 2026, Azerbaijan’s banking
system reported total assets of AZN62.5 billion. Since 2021, total
assets have increased at a compound annual growth rate of 11%,”
reads the latest report on the International Bank of Azerbaijan
issued by the rating agency.
Moody’s recalls that as of 31 August 2026, Azerbaijan’s banking
system reported total loans of 34.9 billion manat and net loans to
customers of 30.8 billion manat.
“Customer deposits was the largest source of banking system
funds, representing 67% of total liabilities and equity, as of the
same date,” the report said.
According to the Central Bank of Azerbaijan, banking assets
amounted to 46.7% of GDP, a measure of banking sector depth.
The balance sheet grew mainly on the back of an increase in
household term deposits, supporting loan portfolio growth.
Earlier, Moody’s said that Azerbaijani banks are the least
exposed to geopolitical risks among the Central Asian and South
Caucasus countries.
“This reflects the country’s limited economic and financial
linkages with Russia, the resilience provided by hydrocarbon
revenues that benefit from higher oil prices and the stability
afforded by the manat’s peg to the U.S. dollar,” said the rating
agency.
