1. Ashurbayli-Huseynova Nigar Pirverdi gizi –  Azerbaijan State University of Economics  (UNEC), PhD of economics
2.  Gubadova Aybaniz Anver qızı – Azerbaijan State University of Economics (UNEC) , PhD of economics
3.  Qushkhani  Rauf Nasir oglu – Azerbaijan State University of Economics (UNEC) , PhD of economics
4. Mammadova  Gulsum Mirdamet gizi – Azerbaijan State University of Economics (UNEC) , PhD of economics


The main goal is to explore reforms in the development of the banking system in Azerbaijan that cannot be held apart from international banking standards and requirements, without interacting with international financial organizations, without creatively using existing international experience in this field. The reforms of the financial sector of Azerbaijan have been going on for a long time, but now it has become a clearly noticeable qualitative result of the development of the banking system. New trends can be found in lending to the economy. In recent years, banks have preferred to invest mainly in small projects and only in areas with a fast and low risk. Over the past year, the growth rate of short-term loans has slowed, increasing the volume of long-term investments. The main goal of economic policy in the country is to ensure macroeconomic balance and, in general, the overall economic balance. In this regard, the state sets goals in a general sense (without taking into account the conjuncture conditions and structural differences of the country's economy): increase in the level of employment of the population; increase in production; Preventing price increases and maintaining stability; balance protection in the balance of payments; ensuring equity in income distribution and ensuring efficient use of resources. It should be noted that the Azerbaijani model of economic growth in the last decade (based on stimulating domestic demand through redistribution of growing oil revenues in the economy through the budget system), in our opinion, requires our own updates.

Keywords: banking system, monetary policy, devaluation, market price, interest rate, nominal and real effective exchange rate, budget revenues and expenditures.