BAKU, Azerbaijan, January 6. Banks in Azerbaijan have been given one year to align their capital with Basel III standards, Trend reports via the Central Bank of Azerbaijan (CBA).
This issue has been reflected in amendments to "Rules for calculating bank capital and its adequacy" made by the CBA Management Board's decision of December 16, 2025, proceeding from the "Strategy for the development of the financial sector in 2024-2026," in order to strengthen financial stability in the banking sector and increase compliance with international regulatory standards.
With the aforementioned amendments, the structure of bank capital, capital adequacy ratios, capital buffers, and a number of other requirements and regulations have been aligned with Basel III standards.
According to the amendments, the introduction of new capital buffers will increase the resilience of banks to possible losses, facilitate more accurate risk assessment, and improve the quality of bank capital, as well as further support the processes of sustainable financing of the economy.
At the same time, the completion of the process of aligning capital requirements with Basel III standards will ensure the strengthening of prudential policy and the control framework, as well as make a positive contribution to the attractiveness of the banking sector for international investors.
The banks have been given a one-year transition period to adapt to the new capital structure and align internal bank rules and procedures with new regulatory requirements, as well as conduct necessary training in the sector and integrate new approaches into prudential reporting. Thus, banks will be required to fully comply with the new requirements from January 1, 2027.
The relevant changes can be viewed at the following link:
https://e-qanun.az/framework/61125
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