Evaluation of financial stability of azerbaijan commercial banks using the fuzzy logic methods

Abstract

The paper considers two fuzzy methods of multifactor assessment of alternatives and groups of financial indicators, which are used to assess the financial stability of the four leading commercial banks of Azerbaijan. At the same time, the choice of financial ratios that have the greatest impact on the financial stability of a bank is dictated by the desire to establish a strict correlation between the financial condition of banks and these factors. Therefore, not trying to invent new ratios to assess liquidity, profitability, capital adequacy, quality of assets and liabilities, the paper employs a set of ratios that are most commonly used in various methods for selected financial indicators of bank stability.