Baku: The international rating agency's report highly assessed the prudential policy pursued in Azerbaijan's banking system and the regulatory capital requirements applied in the country, APA-Economics reports.

According to Azeri-Press News Agency, the international rating agency Moody's has affirmed Azerbaijan's Baa3 credit rating with a positive outlook. The agency's assessment highlights improvements in the supervisory framework and the alignment of prudential regulation with international standards as key factors strengthening the resilience of the banking sector.

The agency states that the capital requirements in force have enhanced banks' solvency. It further elaborates that the applied capital requirements have increased banks' solvency. Additionally, new capital buffers have been introduced in Azerbaijan within the Basel III framework, and full compliance with the Basel III standards is expected to be achieved in 2027.