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DOI: 10.18413/2409-1634-2022-8-1-0-9

Assessment of the national banking sector of Azerbaijan: formation and development

Rapidly changing external conditions and the need to ensure financial stability make it necessary to re-evaluate the policy pursued by the Central Bank of Azerbaijan to protect the banking sector from external shocks and formulate  proposals for its improvement. Due to the increased effect of external shocks after 2014 (Since 2014, due to the sharp drop in oil prices and the economic crisis experienced
by trade and partners, in the conditions of the processes taking place in the country, such as a decrease in the rate of economic growth, institutional and structural reforms, the deficit of the balance of payments and the non-oil budget, changes in the financial and banking sectors, there was a need to develop a new approach to innovation and economic development of the financial services sector in Azerbaijan) the topic of the work becomes particularly relevant. The weak scientific development of the problem under study has determined its relevance, goals and objectives, as well as the need for its further study. The purpose of the work is a thorough and comprehensive analysis and assessment of the activities of the banking sector of Azerbaijan, as well as the development of recommendations to improve the efficiency and reliability of the functioning of the banking sector of Azerbaijan in accordance with national interests. Studies show that Azerbaijan needs a systematic program for the development of the banking sector, taking into account milestones, new challenges, economic priorities and lessons learned.

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