Determination of financial performance of Azerbaijan commercial banks

The rapid growth of the banking sector also depends on the effective management of each commercial bank. The activities shown in the activities of commercial banks, their misappreciation can upset serious shortcomings in the operation process and even bankruptcies, and a wide range of risks that can harm shareholders and customers. All this reflects the importance of creating and improving methods for analyzing the effectiveness of banking. Therefore, one of the main objectives of this study is to investigate the financial performance and structure of the banking system in Azerbaijan. Another is to emphasize the importance of corporate governance in the banking system by giving information about the Azerbaijani banking system. Besides, it is focused on the formation stages of the banking system in Azerbaijan and the functions seen in these stages and its methods, the economic structure of banks and the importance of banking, types and functions of banks, the activities of banks in a market economy, the commercial bank and its functions, the characteristics of the activities of commercial banks and the reasons for these characteristics. This thesis study consists of six chapters. In the first part, the real economic growth between 2004-2018 is explained by giving information about the modern development trends of the Azerbaijani economy and the general structure of Azerbaijani banking. In the second part, information is given about the establishment and development of the banking system in Azerbaijan, the stages of formation of the banking system, the economic structure, types and functions of banks. In the third part, the financial system of the Azerbaijan Republic, the formation of this system, the activities and procedure of banks in the financial markets, the main indicators of the development of the securities market in Azerbaijan. In the fourth part, the income and expenses of the commercial banks of the Azerbaijan Republic, the interest margin, the main source of income of the commercial banks and the elements of this source. In the fifth chapter, analysis and evaluation of the current situation of the banking sector in the Republic of Azerbaijan, the main source of income of commercial banks, results of the SWOT analysis of the financial situation of commercial banks are included. The sixth chapter includes the ways to increase the productivity of commercial banks and the enterprises engaged in this activity, and with this the instructions to increase the efficiency of the birge banking activities and the content of these instructions, the assessment of the income and expense levels of commercial banks, the maintenance of financial stability and the development of the financial sector in Azerbaijan, finally financial services. SWOT analysis of the industry and the content of this analysis, development of the regulatory mechanism to accelerate the digital transformation of banks are mentioned. Keywords: Azerbaijan; Banking System; Economy; Finance; SWOT