The research paper “Factors that increase credit risk of Azerbaijani banks” by Dr. Shahriyar Mukhtarov, vice dean of the School of Economics and Management and Dr. Elvin Mammadov, coordinator of the Department of Economics and Management at Khazar University, was published in Journal of International Studies, No 2, Vol 11, 2018. The journal is indexed by SCOPUS (Citescore 1.10), the prestigious abstract and citation database of peer-reviewed literature.

The study investigates the influencing factors behind credit risks in Azerbaijani banks, using annual data covering the period from 2010 to 2015. Within this scope, authors analyzed 10 biggest banks of Azerbaijan with respect to their asset size. Furthermore, 10 explanatory variables were used to achieve this objective. According to the results of analysis, it was defined that 4 independent variables affect credit risk of Azerbaijani banks. It was also determined that decrease in the capital adequacy ratio, interest rate and total assets lead to increasing credit risk. Authors have also identified that there is a positive relationship between unemployment rate and the credit risk of Azerbaijani banks. Therefore, it can be stated that Azerbaijani banks should increase their capital adequacy ratio and total assets amount in order to minimize the negative effects from the credit risk problem.

The paper is available at:

http://www.jois.eu/?422,en_factors-that-increase-credit-risks-of-azerbaijani-banks.