International rating agency Moody's Ratings has stated that Azerbaijani banks have sufficient capital and liquidity buffers to support lending expansion, APA-Economics reports, citing the rating agency.
It was noted that, as of the end of 2025, liquid assets accounted for 37.4% of total banking assets in Azerbaijan.
This indicator stood at 37.5% in Kazakhstan, 35.3% in Armenia, 32.1% in Uzbekistan, and 25.7% in Georgia.
Thus, Azerbaijan ranked second among the five countries compared in terms of the share of liquid banking assets.
According to Moody's, the ratio of banks' tangible common equity to risk-weighted assets in Azerbaijan stood at 19.2%.
The corresponding indicator was 20.4% in Kazakhstan, 17.9% in Armenia, 17.1% in Georgia, and 13.9% in Uzbekistan.
Azerbaijan also ranked second among the region's comparable countries in this indicator.
The agency emphasized that the banking sectors of Central Asian and Caucasus countries have strong buffers to absorb potential losses.
According to Moody's assessment, banks' existing capital and liquidity buffers are sufficient to support lending expansion.
At the same time, the report noted that banks in the region rely mainly on short-term and relatively expensive funding sources. In Azerbaijan, short-term funds accounted for 95% of total funding as of the end of 2025.
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