BAKU, Azerbaijan, Aug.8. Fitch has revised its
operating environment assessment for Azerbaijani banks to
'bb'/stable from 'bb-'/stable.
The rating agency said the revision reflects tighter regulatory
oversight and further progress in implementing a risk-based
supervisory framework, which should strengthen the sector's
resilience to cyclical pressures.
“The assessment also incorporates the sovereign's solid credit
profile and support for macroeconomic stability, narrowing the gap
between the operating environment score and the sovereign rating
(BBB-/Stable),” reads the report released by Fitch.
Fitch expects the banking sector's financial profile to remain
sound in 2026-2027, despite the inherent cyclicality of the
Azerbaijani economy.
According to the Central Bank of Azerbaijan, the banking
sector’s structural liquidity surplus reached AZN 6 billion at the
end of the first half of 2026, more than doubling from December
2025.
“Monetary policy instruments are applied taking into account
developments in financial markets and liquidity conditions in the
banking system,” the central bank said.
The average daily AZIR rate in the unsecured money market stood
at 6.43% in May and June 2026, easing to 6.39% in July to date,
according to the regulator.
The Central Bank said that the increase in the structural
liquidity surplus points to strong lending capacity across the
banking sector.
