Credit Risk Management in the Bank System of Azerbaijan

Abstract

The banking sector of Azerbaijan, being one of the main parts of the country's economy, plays an important role in ensuring the stability of the financial system. Banks support the economy through loans, but credit risks can have serious effects on financial transactions. As Azerbaijan's economy is dependent on the oil market, changes in global markets, especially fluctuations in oil prices, affect the credit policy of banks. In this article, methods of credit risk management in the banking system of Azerbaijan, difficulties encountered and areas for improvement will be examined