Azerbaijan's banking sector capital position shows mixed trends

A dual trend was observed in the capital position of Azerbaijan's banking sector in the first half of 2026, said Atakhan Hasanov, Director of the Financial Stability Department at the Central Bank of Azerbaijan (CBA), Report informs.

"Capital both increased the sector's ability to absorb potential losses and supported market expansion. The sector's aggregate capital reached 7 billion manats (just over $4.1 billion), which is 0.6 billion manats (almost $353 million) more than on July 1, 2025. The capital adequacy ratio stood at 17.7%. The current capital position enables the sector to support an additional 20.1 billion manats (just over $11.8 billion)in risk-weighted assets. The alignment of capital requirements with Basel III standards is planned from January 1, 2027. The updated capital requirements framework will further strengthen the financial resilience of the banking sector," he said at a press conference dedicated to the CBA's semi-annual Financial Stability Report.