COMPARATIVE ANALYSIS OF INTERNATIONAL EXPERIENCE AND THE AZERBAIJAN MODEL IN BANK RESTRUCTURING

Abstract

The main objective of the research is to systematically assess the financial stability of the Azerbaijani banking sector in the context of global financial crises and to explore the applicability of international bank restructuring mechanisms within a national context. The study clarifies conceptual distinctions between "bail-out", "bail-in", "resolution", and "restructuring", and draws on comparative analysis of the US TARP programme, the EU Bank Recovery and Resolution Directive (BRRD), and South Korea's post-1997 model. Key quantitative indicators for the Azerbaijani banking sector — including the NPL ratio, capital adequacy ratio (CAR), credit growth dynamics, and the HHI concentration index — are tracked over the 2014–2023 period to provide an empirically grounded assessment of structural change.
The practical significance of the research lies in the formulation of concrete policy recommendations addressing the need for early-stage macroprudential intervention, stronger legal underpinning of resolution frameworks, and the preservation of competitive conditions in the banking sector.