10:58 - 3.03.2026

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March 3, Fineko/abc.az. In 2026, the application of a risk-based approach to control and increased regulatory control in the banking sector of Azerbaijan will help reduce credit risks, ABC.AZ reports, referring to international rating agency S&P Global Ratings.

In 2024-2025, the regulatory authority implemented a set of measures aimed at limiting banks' risk appetite and increasing loan requirements.

"These measures have been taken over the past 3 years in the context of the Financial Sector Development Strategy 2024-26. They provide for the transition to risk-based control, the introduction of International Financial Reporting Standards (IFRS) 9 in 2026, as well as improvement of corporate governance standards over the past 2 years. We believe after the full transition to IFRS 9 standards for regulatory reporting purposes, the accumulated reserves will not be eliminated," the S&P report says.