Development of banking sector in Azerbaijan: Problems and suggestions for solution of them

After gaining independency, foundation of Azerbaijan national bank system mainly began in 1992 as soon as the laws ?On National Bank? and ?On Banks and Bank Activity? had been approved. The legal bases of forming two stage national bank system has been laid after new wordings of these laws were approved in 1996. Control system on total bank activity has been created together with the independency of national bank system in Azerbaijan. Nowadays there are 44 banks in Azerbaijan. Two banks out of 44 are the banks with state capital, sixteen of them are joint and foreign independent banks established with the participation of foreign capital and the rest twenty six are joint stock commercial banks. This study tells about process of formation and development of banking sector of Azerbaijan. In first chapter the finishing of banking it is creation development and the bases and International Banking and Banking system in the World. In this thesis, banking is discussed generally, in order to create better understanding for wide sections and to contribute it?s in Azerbaijani development. Second chapter firstly says about formation of banking before the independence and further in Azerbaijan. In the third and the last part, the importance of banking system in Azerbaijan economy, it?s problems and possible solutions have been studied.