Fitch positively assesses Azerbaijan's Central Bank reforms on implementing Basel III standards
The international rating agency Fitch Ratings has positively assessed the regulatory reforms of the Central Bank of Azerbaijan aimed at bringing banks into compliance with Basel III standards.
According to the agency's assessment of August 11, 2026, the relevant measures will contribute to strengthening the resilience of banks.
Fitch notes that the capital requirements for banks stipulated by the Central Bank's "Financial Sector Development Strategy for 2024–2026" bring regulatory approaches even closer to international standards. Compliance with the new requirements must be ensured starting in January 2027.
The agency positively assesses the differentiated approach to setting capital requirements for systemically important banks (an additional capital buffer of 1-4%), considering this a positive factor for the stability of the banking system as a whole.
Along with this, the changes provide for the inclusion of Additional Tier 1 (AT1) capital instruments in the regulatory framework, which strengthens banks' capacity to cover possible losses. At the same time, the requirements for capital quality also contribute to further alignment with international standards.
