International rating agency “Moody’s Ratings” has stated that the capital and liquidity reserves of Azerbaijani banks are sufficient for the expansion of lending.
elchi reports this, citing the rating agency.
It was noted that by the end of 2025, the share of liquid assets of Azerbaijani banks in total bank assets was 37.4%.
This indicator was 37.5% in Kazakhstan, 35.3% in Armenia, 32.1% in Uzbekistan, and 25.7% in Georgia.
Thus, Azerbaijan ranks second among the five compared countries in terms of the share of liquid bank assets.
According to “Moody’s”, the ratio of banks’ tangible common equity to risk-weighted assets in Azerbaijan was 19.2%.
The corresponding indicator was 20.4% in Kazakhstan, 17.9% in Armenia, 17.1% in Georgia, and 13.9% in Uzbekistan.
Azerbaijan is also in second place among the compared countries in the region for this indicator.
The agency emphasized that the banking sectors of Central Asian and Caucasian countries have strong reserves to cover potential losses.
According to “Moody’s” assessment, the existing capital and liquidity reserves of banks are sufficient for the expansion of lending.
At the same time, the report noted that the funding sources of regional banks are mainly short-term and relatively expensive. In Azerbaijan, by the end of 2025, the share of short-term funds in total funding was 95%.