11:45 - 6.01.2026

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January 6, Fineko/abc.az. The Central Bank of Azerbaijan has given local banks one year to bring their capital into compliance with Basel III standards, ABC.AZ informs, referring to the CBA.

The CBA Board adopted a decision on December 16 of last year amending the "Rules for Calculating Bank Capital and Its Adequacy."

This step was taken in order to strengthen financial stability and improve compliance with international regulatory standards in the banking sector, based on the Financial Sector Development Strategy 2024-26.

Due to the changes, the bank's capital structure, capital adequacy ratios, capital buffers and a number of other requirements and rules have been brought into line with Basel III standards.

According to the changes, the introduction of new capital buffers will create conditions for a more correct assessment of risks and improve the quality of bank capital by increasing banks' resilience to possible losses, as well as for additional support for sustainable financing of the economy.

These changes brought the bank capital structure, capital adequacy ratios, capital buffers, and a number of other requirements and rules into compliance with Basel III standards.

Banks have been granted a one-year transition period to adapt to the new capital structure, align internal banking rules and procedures with the new regulatory requirements, conduct the necessary industry training, and integrate the new approaches into prudential reporting.

Thus, banks will be required to fully comply with the new requirements starting January 1, 2027.