12:42 - 15.10.2026

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October 15, Fineko/abc.az. The necessary conditions for achieving a high level of concentration in the banking sector have not yet been formed in Azerbaijan, CBA Director General Shahin Mahmudzade said at a press conference dedicated to the semi-annual Financial Stability Report of the regulator.

Explaining his statement, the CBA representative noted that the concentration of the banking sector is observed in all countries where systemically important banks operate.

According to Mahmudzade, in such countries, some banks occupy a larger market share than others. This feature is typical for most of the more than 130 countries in the world.

"The question is what is the concentration level and how is it regulated. Over the past 4 years, the concentration in the banking sector of Azerbaijan has actually decreased. In other words, the share of large banks in the market has declined, while the positions of small banks have improved somewhat," he said.

Mahmudzade also pointed out certain differences between large and small banks in the cost of attracting financing.

"At that, large banks have more opportunities to work with real estate and other systems. If restrictions on obtaining licenses or other restrictions are introduced, this may lead to further increased concentration. Currently, there is an average level of concentration in Azerbaijan, and we are not ready for a high level of concentration yet," he stressed.