Moody's says Azerbaijan’s banks more resilient to economic shocks

The banking systems of Azerbaijan, Kazakhstan and Uzbekistan have strengthened their positions by creating buffers that allow them to withstand moderate economic shocks, Report informs referring to Moody's, the international rating agency.

"In recent years, the largest regional economies – Kazakhstan, Azerbaijan and Uzbekistan – have made major strides in diversifying their economies and enhancing their economic resilience. Most regional banking systems have also built substantial buffers to help them withstand moderate shocks, while a tightening of regulations following the pandemic and 2014-15 currency crisis in many developing countries has resulted in declines in dollarisation at banks, making them less vulnerable to external shocks. In the region's corporate sector, we expect the sound business and financial profiles, comfortable liquidity and the benefits of state support to help the mostly large and predominantly state-owned entities that we rate to navigate the economic turbulence."