CREDIT MARKET DEVELOPMENT AND SME FINANCING IN AZERBAIJAN: BANKING TRENDS AND ALTERNATIVE FINANCE OPPORTUNITIES

Abstract

Azerbaijan’s credit market expanded in 2025, although the composition of lending remained uneven across financial institutions. Bank lending was led by business loans, whereas consumer credit dominated the portfolios of non-bank credit institutions. This article examines the implications of these differences for small and medium-sized enterprises and considers financial leasing and digital underwriting as complementary funding channels. Official statistics are evaluated alongside credit infrastructure indicators, with attention to financial risk and the limits of aggregate data.