10:59 - 8.08.2026

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August 8, Fineko/abc.az. According to a report by Moody's Ratings, asset quality and loss-absorption capacity within Azerbaijan's banking sector have strengthened substantially compared to 2019 levels.

The report highlights that the share of non-performing loans (Stage 3 + POCI) in total gross loans fell from 14–15% in 2019 to approximately 3–4% by the end of 2025. Concurrently, the ratio of non-performing loans to tangible common equity and loan loss reserves plummeted from over 40% to below 10%.

The agency emphasized that the domestic banking sector maintains ample liquidity buffers to withstand potential market stress. However, further enhancing regulatory independence and refining crisis management frameworks remain key priorities for future institutional alignment.