"In 2026, capitalization in Azerbaijan’s banking sector will remain at a stable level, while liquidity indicators will stay high," APA-Economics reports, citing the international rating agency Fitch Ratings.
According to the information, since banks’ profitability is sufficiently high and the growth of risk-weighted assets is progressing at a moderate pace, no significant changes are expected in capitalization indicators. Fitch notes that although the payment of a significant share of dividends by large banks has some impact on capitalization, this impact is fully balanced.
The agency forecasts that in 2026 the sector’s Tier I capital adequacy ratio will remain at around 14% (Q3 2025: 14.6%). This indicator is significantly higher than the minimum level required by the Central Bank (5% for ordinary banks, 6% for large banks).
According to the report, liquidity buffers in the banking sector, including liquidity in foreign currency, will remain strong. It is stated that the ratio of total loans to deposits across the sector will remain at approximately 80%.
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