BAKU, Azerbaijan, October 3. The asset base of Azerbaijan’s non-banking financial institution (NBFI) sector took a hit during the first half of the year.
Data obtained by Trend from the Central Bank of Azerbaijan (CBA) indicates that total assets of NBFIs fell by 3 percent, or 30 million manat ($17.6 million), to reach 963 million manat ($566.4 million).
The primary driver of this decline was the net loan portfolio, which decreased by 6.3 percent, or 45 million manat ($26.4 million), despite ongoing lending activity.
The reduction was influenced by the implementation of the “Prudential Regulation of Non-Bank Credit Institutions” rules last November (15), which required the creation of special reserves at the expense of costs, affecting net loan volumes. Total liabilities of NBFIs also decreased by 4.5 percent, or 24.4 million manat ($14.3 million), to 513 million manat ($301.7 million), largely due to obligations such as credit and taxes.
As of the first half of 2025, the sector comprised 57 NBFIs and 36 credit unions (CU), totaling 93 non-bank credit organizations. Their contribution to the financial ecosystem is relatively understated, capturing a mere 1.6 percent of the market share in terms of assets. Throughout the reporting interval, a singular non-banking financial institution (NBFI) license was rescinded while an additional one was conferred. Within the landscape of active non-bank financial institutions, a cohort of 15 entities is characterized by foreign capital infusion, with a significant subset of 12 institutions maintaining a capital structure where more than 50 percent is sourced from international stakeholders.
The labor force within non-bank financial institutions experienced an augmentation of 147, culminating in a total of 3,693 personnel, while the branch network expanded by 5, achieving a cumulative count of 309 locations.
