25 February 2026, Baku: On 23 December 2025, the Management Board of the Central Bank approved the Methodological Guidelines for the application of International Financial Reporting Standard 9 for asset classification and loan loss provisioning (Guidelines) to bring banks’ asset classification and provisioning practices into closer alignment with IFRS 9.

Adopted under the 2024–2026 Financial Sector Development Strategy, the Guidelines represent an early step toward incorporating IFRS 9 standards into the regulatory and reporting framework. The move will align domestic prudential rules with advanced international practices, while strengthening transparency, accountability and cross-border comparability within the banking system.

The guidelines establish a unified approach for classifying bank assets under IFRS 9 for supervisory purposes and for determining appropriate loan-loss provisions. Beginning in 2026, banks will classify assets and calculate provisions in parallel under both IFRS 9 and existing prudential requirements.

To support implementation, the Central Bank convened meetings with bank specialists responsible for preparing IFRS 9 reports. Participants discussed practical challenges and technical questions related to applying the new framework.

The full text of the methodological guidelines is available at the link below:

https://uploads.cbar.az/assets/Methodological_Guidelines_on_the_implementation.pdf

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