14:44 - 20.02.2026

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February 20, Fineko/abc.az. The growth of lending in Azerbaijan slowed down significantly in 2025, while banks remain well-capitalized and profitable.

ABC.AZ informs, referring to the statement made following a visit to Baku on February 4-17, 2026, by Anna Bordon, the head of the IMF mission on Azerbaijan.

According to forecasts, the net domestic lending in 2025 increased by 29.7% compared with the previous year. However, the IMF expects slowdown in lending rates from 11.2% in 2026 to 9.7% by 2032. Unlike the total volume of loans, the private sector lending segment has a more predictable trajectory. Namely, growth is projected at 8.9% in 2026, and stable at 9% annually in 2027-2031.

"Maintaining the current parameters of the countercyclical capital buffer is advisable, given the slowdown in lending growth, while the introduction of a liquidity coverage ratio and the planned introduction of a net stable financing ratio will support the stability of the banking sector," Bordon stressed.

In her opinion, the recent introduction of risk-based supervision by the Central Bank of Azerbaijan will strengthen prudential control and, along with the gradual introduction of Basel III standards and the ongoing improvement of the financial security system, will strengthen financial stability and further increase public confidence in the banking sector.