BAKU, Azerbaijan, October 22. Since 2021, total assets of Azerbaijan’s banking system have increased at a compound annual growth rate of 11%, says Moody’s.
“As of 29 September 2026, the Azerbaijan banking system consisted of 21 banks. As of 31 August 2026, Azerbaijan's banking system reported total assets of AZN62.5 billion. Since 2021, total assets have increased at a compound annual growth rate of 11%,” reads the latest report on the International Bank of Azerbaijan issued by the rating agency.
Moody’s recalls that as of 31 August 2026, Azerbaijan's banking system reported total loans of 34.9 billion manat and net loans to customers of 30.8 billion manat.
“Customer deposits was the largest source of banking system funds, representing 67% of total liabilities and equity, as of the same date,” the report said.
According to the Central Bank of Azerbaijan, banking assets amounted to 46.7% of GDP, a measure of banking sector depth.
The balance sheet grew mainly on the back of an increase in household term deposits, supporting loan portfolio growth.
Earlier, Moody’s said that Azerbaijani banks are the least exposed to geopolitical risks among the Central Asian and South Caucasus countries.
“This reflects the country’s limited economic and financial linkages with Russia, the resilience provided by hydrocarbon revenues that benefit from higher oil prices and the stability afforded by the manat’s peg to the U.S. dollar,” said the rating agency.
