IMF praises Azerbaijan's financial stability, strengthened with robust macroprudential framework

IMF stress tests confirm the resilience of Azerbaijan’s banking system under baseline scenarios. However, in more severe situations, the overall capital adequacy ratio could decline to 4.5%. Alarmingly, 8 of the 23 banks -representing 35% of the sector’s assets - could require recapitalization, albeit with a relatively modest estimated capital gap of 0.5% of GDP....
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