"Azerbaijani banks have demonstrated better resilience against macroeconomic challenges"

Azerbaijan's banking sector is showing signs of recovery after a prolonged correction, supported by favorable commodity prices and a significant improvement in asset quality, which have stimulated strong demand for loans.

Qazet.az reports that this is stated in the research of "S&P Global Ratings" international rating agency.

"We believe the banking sector has shown better resilience to macroeconomic challenges in recent years, and the cost of loans and non-performing loans in the system remain well below our previous expectations.

Bank asset quality indicators show continued improvement to historically low NPLs and credit costs, and we believe the banking sector has weathered a challenging 2020, economic downturn and low oil prices," S&P said.

Non-performing loans may deteriorate moderately to 4-5% annually, against the 3.5% officially announced in the middle of this year.