BAKU, Azerbaijan, October 13. The volume of time deposits held by individuals in Azerbaijan increased by 9.9% in the first half of 2026, reaching 11.3 billion manat ($6.6 billion).
This was stated in the “Financial Stability Report” published by the Central Bank of Azerbaijan (CBA).
The report notes that the growth in time deposits contributes to strengthening the banking sector’s stable sources of funding and ensuring long-term financing. During the reporting period, demand deposits held by individuals also increased by 1.2% to 6.1 billion manat ($3.5 billion).
According to the CBA, against the backdrop of growing confidence in the banking sector, the introduction of new monetary and macroprudential policy mechanisms, and the expansion of digitalization, the number of unique depositors in the time deposit segment has also increased. Compared to the end of 2025, their number grew by 13.7%, exceeding 220,600 people.
The report also examines a new deposit insurance methodology. It
notes that the new approach, which was implemented in early 2026,
provides for a transition from a uniform interest rate cap of 12%
for all deposits in the national currency to a system whereby 2
percentage points are added to the sector-wide average interest
rate for time deposits held by individuals with terms ranging from
9 months to 3 years.
Under the new methodology, the Central Bank of Azerbaijan (CBA)
analyzes relevant time deposits attracted over the past six months,
calculates the sector-average interest rate twice a year, and
submits the results to the Deposit Insurance Fund (DIF). The DIF’s
Board of Trustees, taking into account trends in the average
interest rate, decides whether to maintain or adjust the maximum
interest rate on insured deposits.
The current approach to foreign-currency deposits remains
unchanged. The maximum interest rate for insuring such deposits
remains at 2.5% per annum.
The Central Bank of Azerbaijan (CBA) noted that in 2026, the sector-wide average interest rates on deposits had already been calculated twice using the new methodology. The results of these calculations did not require any change to the maximum interest rate on insured deposits.
