Fitch Ratings doesn't expect the implementation of Basel III standards to have a significant impact on lending dynamics or changes in the loan portfolio structure of the Azerbaijani banking sector, Maksim Maliutin, associate director, EMEA Bank Ratings at Fitch Ratings, told Report during the webinar "Fitch on the Caucasus: Sovereign and Banking Sector Perspectives for 2026."
According to him, banks will likely continue to expand lending to the retail segment, while the corporate portfolio will remain dominated by trade and services, a structural feature of the sector.
"Local banks do not lend significantly to oil and gas companies and are primarily focused on the trade and services sector, so we do not expect a significant impact there," Maliutin noted.
He also emphasized that many Azerbaijani banks are well prepared to meet the new Basel III requirements, as their capital ratios, according to Fitch, are already at an adequate level.
"Some smaller banks may face some challenges, but the major players in the sector are generally prepared to comply with these requirements," he added.