Regulator gives Azerbaijani banks 1 year to bring their capital in line with Basel III standards

The Central Bank of Azerbaijan has given local banks one year to bring their capital into compliance with Basel III standards, Report informs referring to the CBA.

The CBA Board adopted a decision on December 16 of last year amending the "Rules for Calculating Bank Capital and Its Adequacy."

These changes brought the bank capital structure, capital adequacy ratios, capital buffers, and a number of other requirements and rules into compliance with Basel III standards.

Banks have been granted a one-year transition period to adapt to the new capital structure, align internal banking rules and procedures with the new regulatory requirements, conduct the necessary industry training, and integrate the new approaches into prudential reporting.

Thus, banks will be required to fully comply with the new requirements starting January 1, 2027.