Process of revival of internal financial market of the country began with the acquisition of independence by Azerbaijan, democratization of society and economy at the beginning of 90th years of last century. This problem is large-scale, intricate and that is why it requires a lot of time. Nevertheless during historical shortest time the modern mechanism of doing services on distribution and re-distribution of capital – financial market, which basic participants are financial-credit institutions (sellers-emitents, buyers-investors, mediators-providers) was created on the basis of accepted legislative-lawful acts and normative documents.
   The structure of financial market was shown at the diagram.
   State short-term obligations and Notes of NBA, which emissions and placing gets recently casual character became the basic financial tool on a registration segment in our country. But such tools as commercial, treasury and bank bills, corporate bonds and other types of short-term obligations did not occupy a due niche in the market. Interbank money market provides redistribution of money resources among banks in the form of interbank deposits and credits on short terms for realization of active operations, adjusting of balances, implementation of requirements of regulative organs, and in particular NBA. At this segment NBA represents credits to commercial banks at refinancing. Thus depending on conjuncture of financial market, with a view of preservation of stability, adjusting of money mass and providing of bank liquidity NBA defines percent of refinancing. So, on October of this year NBA twice reduced percent rate of refinancing from 15% to 8% taking into account distribution of influence of global financial crisis. The top limit of percent corridor is lowered from 20% to 15%, and the lowered limit from 3% to 1%. Using the various tools foreseen by money-credit policy NBA regulates also the volume being in circulation of money mass, the level of inflation and the rate of the national manat to the currencies of the leading developed countries of the world. So, by information given for October 1 of 2009 the volume of money mass made 8494,3 million manats in wide understanding (aggregate M3), in which specific gravity of foreign currency made 28,4%. The share of cash being in circulation made 68,2% from aggregate M2 (4145,7 million manats),
and remaining - 31,8% - on a share of non-cash means. The level of monetization of the economy is shown on the schedule in comparison of 2007. As of the end of 2008 the monetization level made 22,3%. World crisis, reduction of importing inflation and the number of measures accepted by the Government and NBA assisted the lowering of the indexes of consumers prices which made 120,8% on January-December in comparison of the same period of last year.

   Dynamics of monetization level
      Besides realization of adjusting function, NBA remains one of basic players at interbank money market. So, on January 1 of 2009 the volume of refinancing has made 229 million manats, that is more on 2,4% than the volume of 2007. By the information about structure of assets and liabilities of banks for December 31 of 2008 year credits were given by banks of the country to the financial sector and placed deposits in the volume almost 415 million manats, which makes 4% of all bank assets. At the same time deposits and credits in the volume of 3265,4 million manats or 31,8% to the liabilities are involved from financial sector for the same date. One of use directions of interbank deposits and credits - is a realization of assets operations by banks by crediting of managing subjects. Therefore, managing subjects are in the number of participants of this segment - juridical and physical persons with the demand for credit means, and also population - banks investors of money means, expanding credit means of banks. Information about commercial and consumer credits given out by banks of the country for expired 2008 on branches of economy and physical persons is given in the below table.

	Credit investments in million manats on 01.01.2009	Specific gravity in the common sum, in %	Changes concerning 01.01.2008, in %
Physical persons	2334,9	32,6	140,9
TradTrade and services	1911,5	26,7	160
Transport and connection	669,1	9,3	142,5
Industry and production	427,5	6,0	138,8
Construction and operations with the real estate	461,4	6,4	147,7
Agriculture and manufacturing industry	261,5	3,7	132,6
Energy, chemical industry and natural resources	855,7	11,9	In 2,8 times
State Establishments	0,6	-	0,9
Public organizations	7,1	0,1	In 2,3 times
Other credit operations	16,3	0,2	58
Overdue credits	159,8	2,2	159,3

  Baku Interbank Currency Exchange (BBVB) takes place in this interbank segment of the financial market as mediator at giving interbank credits. Transactions in the sum of 144,2 on manat credits, 105,06 mln. dollars of USA on dollar credits and 18,5 mln. Euros have been concluded in credit segment of Bourse E-System of Trades for expired 2008. In comparison of 2007 the volume of crediting in manats and dollars of USA increased in 4 times.
Currency market provides realization of settlements on foreign trade, services, investments, and international payments by means of exchange of currency for the others in the form of purchase or sale of foreign currency by the payer or recipient. Banks and Baku Interbank Currency Exchange (BBVB), which carries out intermediary functions and on which exchange rate forms as the basis for official rate of NBA jut out along with others as the basic participants of this segment of the money market. This market is subdivided into two segments: exchange and non-exchange. At non-exchange open interbank market for expired 2008 the volume of trades made 4122,3 million manats in manat equivalent, that exceeds in 91,3% the volume of 2007. The volume of trades at Bourse E-System of trades in 2008 made 2050,5 million manats in manat equivalent that is more 33,7%, than 2007.
Capital market is presented in the form of direct and portfolio investments. Direct investments suppose using of such tools as middling and long-term credits. At these segment banks, credit, leasing, investment organizations come forward as active participants. We will notice that for 2008 the basic capital of economy was invested due to all sources of financing 9073,6 million manats with increasing on 34,3%, from which 3,8% or 349 million manats were credits of banks of the country with the growth on 38,7% concerning to the similar period of last year. Except banks in the process of direct investing in the capital assets took part: the enterprises and organizations at the expense of own means (4075,9 million manats); population of the country due to the own means (291,1 million manats with the growth on 30,6%); the state budget (3726,1 million manats with growth in 2,2 times); non-budget funds (626,7 million manats with an increase on 38,7%).
Foreign investments were also present at this segment of capital markets at the volume of 2224,7 million manats or 24,5% of the general capital investments.
Unlike the above-named short-terms securities being tools of registration segment of the money market securities of capital market have long-term character. Unfortunately, the share market and long-terms bonds has not typed for present necessary turns, exchange trades pass inertly, but the second market of securities is absent practically. Activation of this market will promote strengthening of activity of National Depositary Center, appearance of brokerage institutions, dealership, and operation development REPO, and trusting operations.
Apparently financial market of Azerbaijan passed the forming stage and now it is on the stage of development. So the most important task is making strategy of further development and creation of universal financial market of the country with the wide spectrum of used tools and a set rendered services with the attraction of new participants - emitents (municipalities, corporations) and the investors, the international scale focused on service, capable to be integrated into the international financial market with the tools, including securities that will promote finally to development of business and economy of Azerbaijan as a whole.