The Central Bank of the Republic of Azerbaijan has amended its “Rules for the Calculation of Bank Capital and Capital Adequacy”, aligning the prudential framework for regulatory capital with Basel III standards. The changes update the structure of bank capital, capital adequacy ratios, capital buffers and a range of related prudential requirements. The Central Bank links the introduction of new capital buffers to stronger loss-absorbing capacity, improved risk assessment, higher-quality bank capital and additional support for sustainable financing, and positions completion of the Basel III alignment as strengthening prudential policy and the supervisory framework. Banks have a one-year transition period to adapt their capital structures, internal rules and procedures, training and prudential reporting, with full compliance required from 1 January 2027.

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