Analysis Of Financial Management And Stability Of The Banking System In Conditions Of Economic Crisis

Abstract

The dissertation is devoted to the financial management and stability of the banking system in the conditions of the economic crisis. In chapter I, entitled "Theoretical foundations of the essence and assessment of the financial stability of the banking sector", the researchers' views on financial stability are reflected. At the same time, financial stability, indicators for assessing the financial stability of the banking sector are presented in detail. Chapter II entitled "The role of the central bank in ensuring the financial stability of the banking sector" contains the analysis of the Central Bank's measures to eliminate financial instability during and after the crisis, the stress test and its application by the Central Bank of the Republic of Azerbaijan, indicators of the banking sector reflecting the impact of macro shocks was analyzed. In chapter III, "Analysis of the stability of the banking sector of Azerbaijan based on the econometric model", the assessment of the dependence of reserves for possible losses of the banking sector on macroeconomic factors, the assessment of the dependence of the profitability of banking sector assets on macroeconomic factors was carried out. At the same time, in this chapter, a correlation analysis was conducted based on the data of the banking sector. As a result of the study, we can say that the country's banking system is sensitive to GDP growth rates, oil prices, capital flows, exchange rate dynamics and stock indices. These are the main macroeconomic shocks specific to the economy. Moreover, some of them, for example, capital outflows and falling GDP, affect banks not immediately, but after a certain period of time. Understanding this fact is useful in developing measures to prevent crisis tendencies in the banking sector and to strengthen the financial stability of the banking sector. At the end of the research work, a list of literature used during the research is given.