Baku: “There are two indicators in Azerbaijan that should be monitored in the years 2025-2026,” Maksim Maliutin, Deputy Director for CIS+ and Middle East Banks at the international rating agency Fitch Ratings, told APA-Economics.

According to Azeri-Press News Agency, Maliutin emphasized the importance of oil price dynamics as the first critical indicator. He noted that Azerbaijan’s economic growth is heavily reliant on oil and gas exports, suggesting that fluctuations in this sector could influence business prospects for local banks.

The second indicator identified by Maliutin is the continued growth in retail lending. He highlighted that while there is potential for further growth over the next two years due to weak credit penetration, the increasing indebtedness of the local population could pose a credit risk for banks, potentially leading to higher non-performing loans.

Despite these concerns, Maliutin expressed confidence that any potential deterioration in the banking sector could be managed. He assured that the Central Bank of Azerbaijan would continue to monitor the retail segment’s performance and implement effective measures to prevent any overheating in the sector.