15:19 - 11.02.2025

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February 11, Fineko/abc.az. Azerbaijani banks occupy a stable position among the banks of the South Caucasus region.

ABC.AZ reports that Maxim Malyutin, Deputy Director for Banks of CIS+ and the Middle East at Fitch Ratings, said about this.

He noted that the ratings of most banks in the Caucasus region have increased in recent years.

In Georgia and Armenia, this was mainly linked with the economic recovery after the pandemic and an increase in the influx of deposits of Russian origin as a result of the war in Ukraine.

In Azerbaijan, the positive rating changes are mainly linked with rising oil prices, reduced risks associated with the quality of obsolete assets, and strengthening the regulatory framework.

Malyutin noted that, nevertheless, all banks in the region still have a rating below investment grade, they vary between B and BB+.

The main reasons are the limitations of the sovereign rating and structural problems: "For example, the ratings of Armenia and Georgia are at the BB- level. Other limiting factors are the high degree of dollarization of lending and financing, a large concentration of balance sheets, and certain regulatory deficiencies compared to international standards."