S&P Global Ratings has published a forecast on banking sector of Azerbaijan

International credit rating agency S&P Global Ratings has voiced assumptions about high risks for the banking sector of Azerbaijan in the 2nd quarter of 2023.

banks.az reports that the Agency again rated Azerbaijan 9 points on a 10-point scale, according to the level of risk growth in this sector. S&P has maintained "stable" trends of economic and industrial risk in the banking sector.

"Struggling with the trend of tightening global financing conditions, the developing banking sectors of Armenia, Azerbaijan, Georgia, Kazakhstan and Uzbekistan in 2022 significantly benefited from non-resident financial flows because of the war in Ukraine and the growing instability in the region. We do not expect the same strong financial flow this year, but we also do not expect non-resident financial funds to suddenly leave the banking sector. Therefore, we consider the risks associated with this to be manageable," S&P said, commenting on the risks associated with the banking sector of these countries in 2023.