ABA submits government initiatives to address non-performing loans

The Azerbaijan Banks Association (ABA) has put forward government-level initiatives to resolve bad debts and expects their prompt review, ABA President Zakir Nuriyev announced during a risk management forum.

Nuriyev stated that the share of non-performing loans (NPLs) across the banking system's total credit portfolio stood at 2.8% as of October 1, 2026. Attributing the nominal increase in toxic assets to overall credit portfolio expansion rather than a sharp systemic deterioration reported by some outlets, the association chief noted that current levels still warrant proactive intervention. He confirmed that joint proposals have been drafted alongside the Central Bank of Azerbaijan and relevant state agencies.

Nuriyev also underscored emerging cybersecurity and fraud vulnerabilities across expanding digital payment channels, while reminding that full compliance with Basel III capital requirements will become mandatory for domestic banks starting January 1, 2027.

N. Tebrizli