Azerbaijan Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in azerbaijan, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Banking and Finance
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Overview

The financial sector in Azerbaijan is dominated by banks, which hold about 95 percent of total financial sector assets. The non-banking financial sector, particularly microfinance, remains underdeveloped and was significantly impacted by currency devaluations in 2015. The number of banks operating in the country has decreased over the years and as of September 2025, there are 22 banks operating in Azerbaijan, including 20 private commercial banks and 2 state-owned banks.

The currency market in Azerbaijan has remained stable, with the manat pegged to the US dollar at approximately 1 USD = 1.70 AZN, a rate that has been maintained since April 2017. As of September 2025, the Azerbaijani Central Bank’s foreign exchange reserves increased to about $11.25 billion.

Lending in the banking sector has grown steadily, with total loans reaching $16.3 billion (AZN 27.88 billion) by March 2025. Business loans accounted for 53.6 percent of total loans, consumer loans 30.9 percent, and mortgages 15.5 percent. Deposits and loans have continued to expand, supported by stable macroeconomic conditions. The share of impaired loans remains low, reflecting improvements in credit quality. Dollarization of deposits and loans has gradually declined, while broad money expansion continues to support economic activity.

Leading Sub-sectors

Financial and wealth management, trade finance, working capital, and lending represent the best prospects for new business development. Demand for microfinance is also increasing, with very few lenders in place. Leasing in Azerbaijan is in its infancy but is a promising vehicle for business financing in this developing market. The best prospects in leasing include manufacturing equipment, farm machinery, medical devices, and transportation.

Opportunities

Many Azerbaijani banks have expressed interest in pursuing correspondent relationships with U.S. banks. In addition, an increasing number of private banks are interested in attracting foreign equity investors. The EBRD, IFC, and some German financial institutions have taken equity stakes in such institutions. There is also a growing market for financial and wealth management services. 

Resources

Central Bank of Azerbaijan

 

 

 

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