The role of the investment banking in the development of capital market in azerbaijan

The financial system of Azerbaijan entered into development period after gain his independency. In particular, the law has been adopted for the development of the banking sector in the financial system, and regulations were made. One of the biggest problem in the financial system of Azerbaijan is that commercial banks are more powerful that the investment banks and other financial organizations. That leads to deficits in the investments and high percentages in the credits. Investment banking includes transfer of present resources, bonds, stocks exchange and other procedures and organization. Investment banks run procedures besides deposits, other functions of the commercial banks. Investment banks unite the fund needing and fund raising organizations and make reliable affairs among them. It helps reliable capital market. It advices the underdeveloping organizations and assist them to aware of the risks and direct them to the real investments. Investment banks help the institutions financial transperancy and make their accountancy for the international standarts. For the present investment banking has not increased. There are just investment banking departments in the commercial banks and their activities were limited. The aim of this work note potential benefits to Azerbaijan investment market and banking section according to international investment banking; note help of the investment banking to the development of the capital market in Azerbaijan; determine the working ability of the banks with the help of the countries legal system where investment banking developed. Keywords: Investment Banking, Capital Market, The Banking Sector in Azerbaijan