The new strategy is intended to support insurance, capital markets and fintech. Preparation of the document is nearing completion.
A bank-led financial system
Banks account for 94-95% of Azerbaijan’s financial sector, CBA Governor Taleh Kazimov said at his 29 October press conference. He attributed their dominance to the market’s historical development.
The regulator sees potential in insurance, capital markets and fintech. Kazimov said the CBA’s role was to create conditions that participants could use to expand their businesses.
Preparation of the 2027-2030 strategy is almost complete, with annual implementation reporting planned. The governor estimated that around 85% of the objectives and initiatives in the current strategy had been implemented. A detailed final report is expected in the first quarter of next year.
| Measure in the remarks | Estimate or timing |
|---|---|
| Banks’ share of the financial sector | 94-95% |
| Current objectives and initiatives implemented | Around 85% |
| New strategy | 2027-2030 |
| Final report on the current strategy | First quarter of 2027 |
How to measure structural progress
The prominent role of banks makes business access to finance heavily dependent on banking products. Bond markets, investment services and insurance could broaden the available instruments, but require sustained demand, transparent reporting and infrastructure.
An implementation percentage measures programme delivery; it does not establish an equivalent improvement in access to finance. Outcomes for companies and households need separate assessment through user numbers, available products, service costs and funds raised.
The next strategy needs a clear connection between measures and observable results. Reduced reliance on one financing channel could make the market more flexible. Its precise targets should be assessed once the document is published rather than inferred from general statements about potential.
