Investigation of the Azerbaijan banking system with data envelopment analysis (2008-2012 period)

After being independent on 18th of October 1991 financial markets were liberalized and this caused the development of the banking systems as a result intensive competition occurred and due to this, deposits collected and lent by the banks for loans have become important the industry. Bank managers and supervisors have developed procedures and methods to accomplish this. This study evaluated the banking system of Azerbaijan within the framework of the 2008 world crisis. These are intended to cover 2008-2012 period on the basis of analyzing the 12 banks operating in Azerbaijan both state and commercial banks and DEA method is intended to analyze and evaluate the overall potential for general improvement suggestions. The study consists of three parts. The first part, was crisis definition and concept of economic crisis, types of economic and financial crisis and causes of the financial crisis in 2008 with its output was examined. In the second part, the Central Bank regulatory and supervisory role as a market player was examined and at the same time, the historical development of Azerbaijan's banking system, the structure of the system, the Central Bank, State and commercial banks, the functions, aims and objectives of the A.C. authority and Azerbaijan Interbank Foreign Exchange market is discussed. In the third part, the banks information collection, utilization methods and varieties of information took place. In the last chapter, with the help DEA method the banks that operate in Azerbaijan were looked at, the Azerbaijan banking system was analyzed and the results obtained were evaluated.