Two consecutive devaluations in 2015 created serious challenges for the country's banking sector. Despite the nearly three-fold increase in non-performing loans and the decrease in deposits and savings, strategic development programs have begun to be implemented in the banking sector. As a result, non-performing loans in the sector decreased to 6.1% in 2020 and de-dollarization processes intensified. At the same time, one of the biggest threats to the Azerbaijani banking sector in 2020 is the new risks posed by the pandemic.

The processes experienced in the world and national economy since the end of 2014, the depreciation of the national currency in the country had a significant negative impact on the finance and banking system, causing the closure of some banks and problems in Turkey. repayment of foreign currency loans. In 2020, Azerbaijan continued its financial stability policy in the context of the pandemic, recession in the world economy, increasing global risks, instability in the world financial and commodity markets, and increasing political tensions in the region. As a result of the measures taken in the previous period, macroeconomic stability was restored in the country, significant progress was made in increasing the stability of the financial and banking system, and the stability trends in the banking sector were replaced by moderate economic activity. In the last 10 years, the country's strategic foreign exchange reserves have almost doubled to 49.1 billion dollars, while the official foreign currency reserves of the Central Bank have reached 6.4 billion dollars. Due to the pandemic, the fluctuations in the banking sector in the first half of 2020 stabilized as of the second half of the year, and the loan portfolio, total assets of the banking system, net profit and capital emerged from a negative stalemate. Despite the achievements of the current period, some risks, difficulties and development potentials continue, albeit partially, in the banking sector. It should be noted that due to the ongoing macroeconomic uncertainties, the country's banks have not been able to fully restore their pre-crisis level of development.