BAKU, Azerbaijan, November 4. Azerbaijan's banking sector is expected to grow by approximately 12% in 2026-2027, President of the Azerbaijan Banks Association (ABA), Zakir Nuriyev, told reporters on the sidelines of a tree-planting campaign held in Mushfigabad to mark Victory Day on Wednesday, November 4, Trend's correspondent reports from the event.
According to him, in the first nine months of 2026, the banking sector's assets approached 64 billion manat ($37.65 billion), while the loan portfolio reached 34 billion manat ($20 billion). Business loans accounted for nearly 18 billion manat ($10.59 billion) of the loan portfolio.
"The growth rate of business loans reached 18% compared to the same period last year. The growth rate of consumer loans stood at 13%," he said.
Nuriyev noted that prudential measures implemented by the Central Bank in 2024-2025 helped bring the growth of consumer loans within certain limits, contributing to the expansion of business lending.
He added that the new regulations, which will take effect in November 2026, are expected to partially slow the growth rate of consumer loans.
According to the ABA president, the banking sector's liquidity assets and available funds of more than 4.5 billion manat ($2.65 billion) create opportunities to expand business lending.
"Our expectation is that lending to both small and medium-sized businesses and large businesses will increase. We expect the banking sector to grow by 11-12% annually in 2026-2027," he emphasized.
Addressing the situation with problem loans, Nuriyev said that overdue loans account for 2.7% of the total loan portfolio. According to him, this figure is comparable to levels in Georgia, Kazakhstan, and Türkiye, while the problems observed in the sector are mainly limited to individual cases.
