The article examines the experience of the Republic of Azerbaijan (RA) in anti-crisis regulation of the banking sector. The author reveals the current state of the banking system of RA. Its development is monitored from three time perspectives – on the eve of the crisis (2005-2007), in the crisis (2008-2009) and post-crisis periods (2010-2020). The characteristics and features of each of them are revealed. The conceptual essence of the definition of “anti-crisis management” is revealed. The factors contributing to the study of anti-crisis management (regulation) of banking activity as an independent field of scientific research, as well as the distinctive features of its methods and tools are highlighted. The article analyzes the impact of anti-crisis regulation on the banking system of RA in the context of the global economic crisis, as well as anti-crisis measures taken by the country’s monetary authorities at various stages of the modern financial collapse. The authors concluded that these measures are inconsistent, and that it is necessary to further improve regulation and supervision in this area, aimed at achieving high financial stability of the banking system, primarily due to an adequate level of capitalization, optimal indicators of financial reserves and liquidity.

The authors analyze the state of international banking business before and after the global economic crisis of 2007-2009, and make predictions on potential future effects of the ongoing COVID-19 pandemic on transformation of international banking and bank strategy. The analysis focuses on trends and changes in the two most important forms of trade in banking services, namely, cross-border banking flows, which include direct cross-border banking flows and local banking flows of international banks’ subsidiaries abroad, and foreign bank presence. It has been concluded that direct cross-border banking flows are more volatile than local banking flows of foreign banks during economic and social upheavals. The period under study has witnessed large increase in foreign bank presence, both in terms of number and local market share. The study determines changes of leading international banks and their home countries, highlighting the weakening position of banks from advanced countries and increase in the role of banks from emerging markets and developing countries. The authors review international expansion strategies of major banks from the post-Soviet states, that are influenced both by the opportunities and goals of banks going abroad, and by the institutional features of their banking systems; countries which these banks are targeting are predominantly comparable to the post-Soviet states in terms of economic development, and are chosen by criteria of their attractiveness, such as high level of trade and political relations with the bank’s home country, the presence of diaspora, the degree of saturation and growth dynamics of the banking market in the host country. The reasons behind the banks’ geographical expansion decision include, among many others, the dramatic growth of their economies, stimulated by the involvement in globalization processes, and liberal banking reforms. Obstacles of economic and non-economic nature that are hindering this expansion, encompass high level of competition in external banking markets, expensive financial resources of domestic banks, low level of expansion of the post-Soviet states-based enterprises to the non-post-Soviet states, discriminatory qualification requirements for personnel and composition of management bodies, problems related to banking licensing procedures and requirements, aspects of culture and communication; their transformation from local banks, operating in the local market, to banks with a clear manifestation of the tendency of their international expansion amidst changing global environment and uncertainty.

The article analyzes changes in the activities of transnational banks (TNBs) taking into account the consequences of the coronavirus pandemic. A review of modern literature on the subject under study was carried out. Given the importance of TNBs for many countries, understanding the scope and direction of current changes is of particular importance to the global economy. Over the past two decades, transnational banking has experienced the following trends: the transformation of credit strategies from aggressive to conservative; South-South banking growth; access to alternative sources of financing; a significant increase in the size of banks; expansion of Chinese banks; strengthening the position of fast-growing markets as home countries of TNBs and the growing importance of developing and emerging markets as host countries of TNBs; geographical differentiation and regionalization of their activities. The results of the study show that the above-mentioned trends are due to a decline in the economies of developed countries and an increase in the economic importance of developing countries. Based on this, we predict a low probability that developed country banks will be active creditors in the near future. Banks from developing countries (especially within their geographical region), whose financial position is much better, can be of great importance in this capacity. It is expected that 2020 will be the year of turning points in the development of transnational banking. A decade after the global economic crisis of 2008-2009, the banking industry faces a new problem that has undoubtedly affected almost every sector of the world economy - the outbreak of coronavirus. Given the lack of research on this topic, the article comprehensively examines the consequences of the crisis pandemic for TNBs.

The article is devoted to the study of the banking business' internationalization impact on financial markets, which is especially implemented in developing countries, primarily in post-communist states. The reasons for foreign banks to conquer new markets in this region have been the subject of numerous studies. The article's novelty is the comparative analysis of the banking systems' internationalization in Azerbaijan and Ukraine, through both theoretical and econometric aspects. As a result of existing concepts of banking internationalization's generalization, three generic features were identified: economies of scale, competitive advantage over local banks, customers' financial behavior; based on this, the systematics for theoretical support of this process is proposed. Based on the comparison of foreign-owned banks share in developed and emerging countries, it is concluded a presence of the fundamental international banking business' expansion in developing countries on the eve of the global financial crisis, which served as an aggravating circumstance in the spread of negative consequences. The level of deposits dollarization and foreign exchange Loans-to-Deposits Ratio proves the key role of international banks in provoking currency credit expansion in both countries; in Ukraine this expansion (due to central bank's irrational actions in foreign exchange regulation) has grown into a credit boom, which especially negatively affected the global financial crisis flow in the state. For empirical confirmation of these assumptions, the economic analysis of banking systems internationalization and development indicators in Azerbaijan and Ukraine was realized through VAR-modeling. The key factors were: cross-border net position of international banks for residents of these countries, system's capitalization, Loans-to-Deposits Ratio, share of deposits in bank passives and the actual banking multiplier. The analysis substantiates the significant impact of international banking business on the state of the banking systems, the degree of which depends on the type of trade policy.

The main hypothesis of the paper was the assumption that the increase in the level of innovation of the financial sector in the post-Soviet states and young European Union (EU) members with an imperfect banking sector and a protracted financial crisis is accompanied by difficulties accessing financing sources and significantly depends on the volume foreign banking capital. The aim of the study is to identify the correlation between the growth of financial innovativeness of the country and the level of foreign banking capital, using Panel data analysis from 2009 to 2019. Unlike previous studies, it was taken into account that the level of financial innovation of the republics of the former Soviet Union is increasingly dependent on external credit resources, while the innovative development of the EU countries becomes financially independent, and this constitutes the scientific novelty of the research. The results confirm the relationship between foreign banking capital and the growth of financial innovativeness of the country, especially with its low and medium levels. To test his hypothesis, the author presented empirical models with the conditions of interaction with the Financial Innovativeness Index. Based on a comparison of indicators of the financial innovation of the country and foreign banking capital, clusters of countries are distinguished according to the nature and direction of the relationship of the analyzed indicators. The author concludes that the increase in the level of innovation in the financial sector of the countries of the former Soviet Union and young EU members depends on the amount of foreign banking capital and the need to consistently expand the tools for the country’s economic growth by attracting it.