Baku: Moody’s Investors Service has reported that Azerbaijan’s planned introduction of Islamic banking windows will generate new income sources for the country’s local banks, APA-Economics reports.
According to Azeri-Press News Agency, the proposed regulatory changes are expected to bolster banks’ profitability, funding, and liquidity profiles. Moody’s has evaluated this initiative as credit positive for Azerbaijan’s banking sector.
The agency also highlighted that the regulatory amendments will assist in diversifying banks’ income structures and broadening the range of products and services available based on Islamic finance principles.