The purpose of the research is to assess the current state of the structure and level of concentration of the banking system in Azerbaijan based on relevant indicators.

The methodology of the research - comparative analysis, logical generalization, syste­matic approach, and mathematical analysis methods were used in the research work.

The practical importance of the research - the fundamental analysis inves­tigated in the research can be used to improve economic efficiency and regulate interbank com­petitive relations.

The results of the research - the structure of the banking system and the issue of com­pe­ti­tion are important in the regulation of economic relations. Therefore, taking into account the cur­rent trends can be important for stimulating the national economy.

The originality and scientific novelty of the research - large, medium and small banks were determined, the level of dollarization of deposits and the level of credit distri­bu­tion in the sectors of the economy were determined.

Keywords: Herfindahl-Hirshman index, level of concentration, level of dollari­zation, crediting of the economy.

http://doi.org/10.59610/bbu2.2024.2.4