THE ROLE OF MACROECONOMIC INDICATORS IN PORTFOLIO MANAGEMENT

This article examines the role of financial indicators in portfolio management, with a focus on the Azerbaijani banking sector. Regression model is used in the study to assess the impact of two key economic metrics on lending by banks and securities portfolios the GDP and the discount rate. The results indicate that GDP and portfolio expansion have a substantial positive slope, while the discount rate having a significant negative correlation. The study highlights the importance of economic indicators in risk control and investing decision making. The results provide insightful viewpoints for investors, financial experts, and regulators and help to better understand the economic factors influencing financial markets.