Azerbaijan’s banking sector is demonstrating renewed resilience and disciplined growth, supported by stronger capital buffers, rising credit activity and rapid development of digital financial infrastructure. Recent data published by the Central Bank of Azerbaijan (CBA) show that the industry is entering a phase defined by improved financial soundness, technology-led modernization and heightened attention to cybersecurity.

The total capital of the banking sector increased by 765.4 million manat over the year, a growth rate of 12.1 percent, and rose by 458.7 million manat since the beginning of the year. Monthly figures also maintained positive momentum with a one-percent increase. This expansion reflects a deliberate effort by banks to reinforce their buffers at a time of global financial uncertainty, creating additional protection against inflationary pressures, regional risks and potential fluctuations in credit quality.

Special capital, the core component of banking capital, reached 6.463 billion manat after an 11.5-percent increase since January, supported by higher profitability and stronger internal risk controls. Bank reserves also continued to rise, reaching 613.2 million manat—an 18.6-percent annual increase—indicating a prudent approach to credit growth and a readiness to absorb possible shocks. With total sector capital standing at 7.010........

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