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S&P Global Ratings improves risk assessment of Azerbaijan’s banking sector

03 February 2025 10:16 (UTC +04:00)

“S&P Global Ratings” international rating agency has improved the risk assessment of Azerbaijan's banking sector (BICRA), APA-Economics reports citing the agency.

According to the information, S&P has changed the industry risk trend for the Azerbaijani banking sector to positive from stable: "The positive industry risk trend captures initiatives to modernize the regulation and supervision of financial institutions in the country over the past two years under the Financial Sector Development Strategy for 2024-2026. If these initiatives are implemented effectively, we think they could further strengthen regulation and supervision for banks in Azerbaijan. However, we continue to view the regulation and supervision framework in the country as weaker than international standards."

Note that BICRA (Banking Industry Country Risk Assessments) is a banking industry country risk assessment by S&P Global Ratings. The highest score in the assessment is 1, and the lowest score is 10. S&P last improved the risk assessment of Azerbaijan's banking sector from "9" to "8" in December 2023.