IDEAS home Printed from https://ideas.repec.org/p/imf/imfscr/2025-099.html
   My bibliography  Save this paper

Republic of Azerbaijan: Financial Sector Assessment Program-Financial System Stability Assessment

Author

Listed:
  • International Monetary Fund

Abstract

This paper focuses on the Republic of Azerbaijan’s Financial Sector Assessment Program as part of Financial System Stability Assessment. Azerbaijan’s economy has recovered from two downturns prompted by the collapse of global oil prices in 2015 and coronavirus disease 2019 pandemic in 2020. An intensification of regional conflicts poses risks to the economy. Similarly, the high reliance on oil and gas revenues renders Azerbaijan vulnerable to oil and gas price declines. This in turn would impact banks’ asset quality and liquidity. Key structural risks to banks stem from substantial reliance on volatile wholesale corporate deposits; continued high financial dollarization, particularly in business loans and deposits; and high credit concentration. Further measures to strengthen regulation and supervision would reinforce financial sector resilience. As noted in previous FSAPs, addressing long-standing issues would entail fully implementing a consolidated supervision framework; safeguarding the Central Bank of the Republic of Azerbaijan’s (CBA) independence; establishing an interagency body for crisis preparedness and management; and giving the CBA full powers for bank resolution.

Suggested Citation

  • International Monetary Fund, 2025. "Republic of Azerbaijan: Financial Sector Assessment Program-Financial System Stability Assessment," IMF Staff Country Reports 2025/099, International Monetary Fund.
  • Handle: RePEc:imf:imfscr:2025/099
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=566422
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfscr:2025/099. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.