DEVELOPMENT DYNAMİCS OF THE AZERBAİJANİ BANKİNG SECTOR AND THE PROBLEMS IT FACES

This article focuses on the development of the Azerbaijani banking system, the problems it faces and its transformation after the crises. The legal and institutional foundations of the banking sector after independence, the growth process in the sector and the effects of economic crises are discussed in detail. The purpose of the article is to analyze the current situation of the Azerbaijani banking sector, to reveal the main challenges it faces and to discuss the reforms necessary for the sustainable growth of the sector. The role of the banking system in economic development is emphasized, and the negative effects of the 2015 devaluation on the sector and the measures taken after the crisis are examined. The importance of this study is to analyze the strengths and weaknesses of the Azerbaijani financial system and to contribute to the establishment of a more robust and resilient banking structure in the future. The need for reform in terms of the sustainability of the sector, the preservation of financial stability and strategies that can support economic growth are emphasized