Azerbaijan Non-Performing Loans
Bank nonperforming loans as % of total gross loans FB.AST.NPER.ZS
Azerbaijan's non-performing loans was 1.93% in 2023, ranked 31st globally. This represents a 24.8% decrease from 2022. Data from World Bank, covering 2022–2023.
Overview
Azerbaijan's non-performing loans stood at 1.93% in 2023, a decline of +0.64pp from 2022. Azerbaijan ranked 31st globally.
Azerbaijan’s non‑performing loan (NPL) ratio fell from 2.56 % in 2022, the highest level recorded in the two‑year series, to 1.93 % in 2023, placing the country 31st globally and matching Kosovo’s 2023 figure while remaining slightly above Luxembourg’s 1.86 % and Belgium’s 1.82 %. The decline suggests a modest improvement in credit quality, likely reflecting tighter underwriting standards and a more resilient banking sector after the pandemic‑induced stress that pushed the ratio to its peak in 2022. The downward movement aligns Azerbaijan with other lower‑NPL economies such as Indonesia, which posted 1.96 % in the same year, indicating that regional banking reforms may be bearing fruit. Continued macro‑economic stability, sustained income growth, and effective risk‑management policies will be crucial to maintain this trajectory, while any deterioration in external financing conditions could reverse the recent gains.
Data & projection
Detected Pattern
Analysis
Azerbaijan matched the Fiscal Dominance Trap pattern in 2022. Historically, 72% of countries showing this pattern (278 out of 386) saw non-performing loans improve within 24 months. View full analysis →
Frequently Asked Questions
Azerbaijan's non-performing loans was 1.93% in 2023. Ranked 31st globally. This represents a 24.8% decrease from the previous year.
Azerbaijan's non-performing loans peaked at 2.56% in 2022.
The lowest non-performing loans in Azerbaijan was 1.93% in 2023.
Azerbaijan ranks 31st globally in non-performing loans as of 2023.
The World Bank indicator code is FB.AST.NPER.ZS. Data sourced from World Bank.
The non-performing loans of Azerbaijan in 2023 was 1.93%. This ranks 31st in the world.
Cite this page
@misc{historysaid_azerbaijan_non-performing-loans,
title = {Azerbaijan Non-Performing Loans},
url = {https://historysaid.com/azerbaijan/non-performing-loans/},
publisher = {HistorySaid},
year = {2026}
}