FORECAST ANALYSIS OF BANK RESOURCES AND DEPOSIT DYNAMICS IN UZBEKISTAN: THE CASE OF UZPROMSTROYBANK

Abstract

This study analyses historical data (2000–2024) to forecast Uzpromstroybank’s deposit base and total resource trends using simple OLS regression models. A linear time-trend model is estimated for both series to capture long-run growth. The regression results show strong, significant upward trends (high R², statistically significant coefficients) for deposits and resources, indicating robust growth. Forecasts generated by extrapolating these trends suggest continued expansion of the bank’s deposits and resources in the short term. The findings are relevant for bank management and policymakers, as they highlight the trajectory of funding sources in Uzbekistan’s banking sector. Limitations include the simplicity of the linear model and potential structural changes, nonetheless, the results provide a baseline projection and underline the importance of improving deposit mobilization and financial sector reforms.

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Sarsenbayev , B., Allambergenova , N., & Kengesov , D. (2025). FORECAST ANALYSIS OF BANK RESOURCES AND DEPOSIT DYNAMICS IN UZBEKISTAN: THE CASE OF UZPROMSTROYBANK. Advanced Economics and Pedagogical Technologies, 2(3), 96–100. Retrieved from https://inlibrary.uz/index.php/aept/article/view/124009
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Abstract

This study analyses historical data (2000–2024) to forecast Uzpromstroybank’s deposit base and total resource trends using simple OLS regression models. A linear time-trend model is estimated for both series to capture long-run growth. The regression results show strong, significant upward trends (high R², statistically significant coefficients) for deposits and resources, indicating robust growth. Forecasts generated by extrapolating these trends suggest continued expansion of the bank’s deposits and resources in the short term. The findings are relevant for bank management and policymakers, as they highlight the trajectory of funding sources in Uzbekistan’s banking sector. Limitations include the simplicity of the linear model and potential structural changes, nonetheless, the results provide a baseline projection and underline the importance of improving deposit mobilization and financial sector reforms.


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FORECAST ANALYSIS OF BANK RESOURCES AND DEPOSIT DYNAMICS IN

UZBEKISTAN: THE CASE OF UZPROMSTROYBANK

Sarsenbayev Bakhitzhan

Karakalpak State University named after Berdakh

ORCID: 0000-0002-6884-2285

bsarsenbaev83@gmail.com

Allambergenova Nargiza

Karakalpak State University named after Berdakh

ORCID: 0009-0006-9257-0204

nallambergenova88@mail.ru

Kengesov Diyorbek

Karakalpak State University named after Berdakh

ORCID: 0009-0004-4822-5820

mr.kengesov@yandex.com

Abstract.

This study analyses historical data (2000

–2024) to forecast Uzpromstroybank’s

deposit base and total resource trends using simple OLS regression models. A linear time-trend

model is estimated for both series to capture long-run growth. The regression results show strong,

significant upward trends (high R², statistically significant coefficients) for deposits and resources,
indicating robust growth. Forecasts generated by extrapolating these trends suggest continued

expansion of the bank’s deposits and resources in the short term. The findings are relevant for

bank management and policymakers, as they highlight the trajectory of funding sources in

Uzbekistan’s banking sector. Limitation

s include the simplicity of the linear model and potential

structural changes, nonetheless, the results provide a baseline projection and underline the

importance of improving deposit mobilization and financial sector reforms.

Keywords:

Uzbekistan, Uzpromstroybank, banking sector, deposit dynamics, forecasting,

time series, ordinary least squares (OLS), financial resources, trend analysis.

O‘ZBEKISTONDA BANK RESURSLARI VA DEPOZITLAR DINAMIKASINING PROGNOZ

TAHLILI: O‘ZSANOATQURILISHBANK MISOLIDA

Sarsenbayev Baxitjan

Berdaq nomidagi Qoraqalpoq davlat universiteti

Allambergenova Nargiza

Berdaq nomidagi Qoraqalpoq davlat universiteti

Kengesov Diyorbek

Berdaq nomidagi Qoraqalpoq davlat universiteti

Annotatsiya.

Ushbu tadqiqot

O‘zsanoatqurilishbankning 2000

-2024-yillardagi tarixiy

ma’lumotlarini tahlil qilib, bank depozitlari va umumiy resurslarining o‘sish tendensiyasini oddiy

OLS (eng kichik kvadratlar) regressiya modeli asosida bashorat qiladi. Har ikkala ko‘rsatkich

uchun chiziqli vaqt tendensiyasi modeli tuzi

ldi va uzoq muddatli o‘sish aniqlashtirildi. Regressiya

natijalari depozitlar va resurslar bo‘yicha yuqori R² qiymatlari va statistik jihatdan muhim

UOʻK:

336.713

96-100


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96

koeffitsiyentlar orqali barqaror o‘sishni ko‘rsatdi. Trend asosida yaratilgan bashoratlar bank
depozitlari va resurslarining qisqa muddatda ham kengayishini ko‘rsatmoqda. Ushbu topilmalar

bank rahbariyati va siyosatchilar uchun dolzarb bo‘lib, O‘zbekiston

bank sektorida

moliyalashtirish manbalarining yo‘nalishini yoritadi. Modelning soddaligi va ehtimoliy tarkibiy

o‘zgarishlar cheklovlar sirasiga kiradi

,

shunga qaramay, natijalar boshlang‘ich prognoz sifatida

foydalidir va depozitlarni jalb qilish hamda moliya sektoridagi islohotlarni chuqurlashtirish

zarurligini ta’kidlaydi.

Kalit so‘zlar:

O‘zbekiston

,

O‘zsanoatqurilishbank

, bank sektori, depozitlar dinamikasi,

prognozlash, vaqt qatorlari, eng kichik kvadratlar (OLS), moliyaviy resurslar, tendensiyalar
tahlili.

ПРОГНОЗНЫЙ АНАЛИЗ ДИНАМИКИ БАНКОВСКИХ РЕСУРСОВ И ДЕПОЗИТОВ В

УЗБЕКИСТАНЕ: НА ПРИМЕРЕ УЗПРОМСТРОЙБАНКА

Сарсенбаев Бахитжан

Каракалпакский государственный университет имени Бердаха

Алламбергенова Наргиза

Каракалпакский государственный университет имени Бердаха

Кенгесов Диёрбек

Каракалпакский государственный университет имени Бердаха

Аннотация.

В данном исследовании анализируются исторические данные

Узпромстройбанка за 2000–2024 годы с целью прогнозирования объема депозитной базы

и общего объема ресурсов банка с использованием простой модели линейной регрессии

методом наименьших квадратов (OLS). Для обеих временных серий построена линейная
модель временного тренда, отражающая долгосрочный рост. Результаты регрессии

демонстрируют устойчивые и значимые тенденции роста (высокие значения R² и

статистически значимые коэффициенты) по депозитам и ресурсам. Прогнозы,

полученные путем экстраполяции тренда, предполагают дальнейшее расширение
депозитной базы и ресурсов банка в краткосрочной перспективе. Выводы исследования

актуальны для руководства банка и регуляторов, так как подчеркивают направление

развития источников фондирования в банковском секторе Узбекистана. К ограничениям

можно отнести простоту модели и потенциальные структурные изменения, однако
полученные результаты служат исходной точкой прогноза и подчеркивают важность

привлечения депозитов и реформирования финансового сектора.

Ключевые слова

:

Узбекистан

,

Узпромстройбанк

,

банковский сектор

,

динамика

депозитов

,

прогнозирование

,

временные ряды

,

метод наименьших квадратов (OLS)

,

финансовые ресурсы,

анализ трендов.

Introduction.

In a market economy, the banking system is one of the most important components of the

financial infrastructure. Through the management of credit, payment, and savings instruments,

it plays a decisive role not only in achieving economic balance but also in shaping the

investment environment. As a result of reforms being implemented in the Republic of
Uzbekistan, the institutional capacity of the banking sector has increased, and financial services

compliant with international standards are being introduced.

At the same time, the role of commercial banks in ensuring macroeconomic stability,

optimizing monetary-credit policy, and developing capital markets is gradually increasing. In
particular, the expansion of bank resource volumes and deposit potential raises the necessity

to assess their impact on economic growth. This study develops regression-based forecast

models of bank deposit balances and total resource volumes using the example of

Uzpromstroybank and analyses their reliability.


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Literature review.

Economic forecasting of banking sector variables is well-established in both international

and Uzbek contexts. In advanced economies, banks have increasingly adopted formal

quantitative methods to predict deposit flows and funding needs. For example, by the late

1970s most large U.S. banks were using econometric and regression-based models for deposit
forecasting. Knake reports that over 20% of large banks use regression analysis or full-scale

econometric models to forecast deposit volumes, exploiting correlations with macroeconomic

factors like income (Knake, 2023). Similarly, Fed researchers note that deposit modelling in

practice often relies on univariate linear regressions (deposit betas) relating bank deposit
growth to market interest rates (Greenwald, et al., 2023). Recent work on forecasting bank

liquidity in Uzbekistan highlights the efficacy of statistical models (e.g. SARIMA, exponential

smoothing) and even machine learning for predicting monetary aggregates and banking

liquidity, underscoring the importance of robust time-series methods (Makhmudov, 2025).

From a broader perspective, deposit dynamics depend on macroeconomic and policy

factors. U.S. studies show that deposit growth tends to accelerate when interest rates fall, as

seen during the 2020

21 pandemic surge, and then decelerate as fiscal stimulus wanes and

rates rise. Forecasts by regulatory authorities suggest relatively modest deposit growth in
coming years under baseline macro scenarios (Creighton, 2024). In Uzbekistan, the context is

unique: state-owned banks dominate the market, and deposit growth has been constrained by

historical public distrust of banks (World Bank, 2022). Recent analyses report strong growth

in bank assets (reaching ~65% of GDP) and a resilient financial system, but also emphasize that

domestic deposit mobilization remains weak relative to regional peers (Dubko, 2023). A World

Bank study notes that Uzbek banks “are not as successful at deposit mobilization as they should

be, including because of historical distrust of the public toward

their services,” which limits

funding diversity (World Bank, 2022).

The literature thus indicates that deposit and resource forecasting is crucial for banking

strategy and policy in Uzbekistan’s reforming financial sector. Econometric trend models

provide a transparent baseline forecast, while more advanced methods (ARIMA, multivariate

regressions, machine learning) can capture cyclical dynamics and shocks. However, simple OLS

trend models remain valuable for their interpretability and ease of use, especially when data
are limited. To our knowledge, few prior studies have applied such models to individual Uzbek

banks. This gap motivates our case study of Uzpromstroybank, a major state-owned bank

currently undergoing partial privatization (World Bank, 2022). The model and results will be

discussed in light of both international evidence (e.g. Fed/OCC reports on deposit growth) and
Uzbek-specific challenges (bank reforms, public trust) (Knake, 2023, World Bank, 2022).

Research methodology.

The methodology draws on standard time-series econometric practice. OLS trend

regression is a baseline forecasting tool when series display steady growth. The selected tests
(R²,

t

and F, Durbin-Watson) are conventional diagnostics for regression models. Data quality

is ensured by using official bank and central bank records. Limitations of this approach

(omitting cyclical or exogenous factors) are discussed below, and suggest that future work

could incorporate ARIMA or machine-learning models as in recent studies.

Analysis and discussion of the results.

To ensure the stable development of the economy, it is first necessary to achieve

equilibrium in the goods and money markets, that is, to reduce the rate of inflation. In this
process, commercial banks serve two key roles: on one hand, they act as intermediaries in

shaping the money supply; on the other, they attract idle funds held by the population into

deposits, thereby contributing to the formation of significant capital. This capital, in turn, serves

as an investment resource for the development of the economy.


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Taking these factors into account, forecast values for the coming years were developed

based on the case of Uzpromstroybank, considering the volume and dynamics of the bank’s

total resources and deposits. A trend model was used to calculate the forecast values for the

deposit balance. In this model, the constant term was excluded and the model was revised, as

the Student’s t

-test results showed that the constant did not meet the required criteria. Data

from the years 2000 to 2024 were used to construct the model. According to the results of the

regression analysis, the model took the following form.

𝑌

1

= 2704,7 ∗ 𝑡

Here: Y₁ –

Uzpromstroybank deposit balance (billion UZS)

To justify the reliability of the model and the adequacy of the coefficient, it can be seen

from the presented results

specifically the outcome of the Student's

t

-test

that the identified

coefficient has a high level of statistical significance. In other words, the probability that it is

equal to zero is less than 0.0001. Additionally, the coefficient of determination is also nearly

equal to one. We found it unnecessary to focus on the results of the Fisher test, as in models of

this type, the outcomes of t

he Student’s and Fisher’s tests are generally the same (Table 1).

Table 1.

Results of the model developed to forecast the deposit balance volume of

Uzpromstroybank

Model 3: OLS, using observations 2020-2024 (T = 5)

Dependent variable: Y1

Coefficient

Std. Error

t-ratio

p-value

time

2704.71

110.708

24.43

<0.0001 ***

Mean dependent var

8235.600 S.D. dependent var

4059.611

Sum squared resid

2696396 S.E. of regression

821.0353

Uncentered R-squared

0.993343 Centered R-squared

0.959097

F(1, 4)

596.8721 P-value(F)

0.000017

Log-likelihood

−40.08966

Akaike criterion

82.17933

Schwarz criterion

81.78877 Hannan-Quinn

81.13110

rho

−0.468915

Durbin-Watson

2.204462


According to the Durbin

Watson statistic, the calculated value is 2.2. Considering that the

optimal value of this criterion is 2, the result can be regarded as satisfactory.

In addition, taking into account that an increase in the bank’s total resources expands its

capacity to conduct financial operations, a trend model similar to the one above was also
applied to forecast the volume of total resources. Unlike the previous case, it was determined

that the constant term in this model is also statistically adequate. The model took the following

form.

𝑌

1

= 15002,4 + 8014,8 ∗ 𝑡

Here: Y₁ –

Total volume of Uzpromstroybank’s resources (billion UZS)

The reliability of this model is also justified by the presented test results, all of which meet

the required standards (Table 2).


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Table 2.

Results of the model developed to forecast the total resource volume of

Uzpromstroybank

Model 6: OLS, using observations 2020-2024 (T = 5)

Dependent variable: Y2

Coefficient

Std. Error

t-ratio

p-value

const

15002.4

2260.01

6.638

0.0070

***

time

8014.83

681.418

11.76

0.0013

***

Mean dependent var

39046.90 S.D. dependent var

12809.22

Sum squared resid

13929897 S.E. of regression

2154.832

R-squared

0.978775 Adjusted R-squared

0.971700

F(1, 3)

138.3445 P-value(F)

0.001321

Log-likelihood

−44.19497

Akaike criterion

92.38994

Schwarz criterion

91.60881 Hannan-Quinn

90.29348

rho

−0.237114

Durbin-Watson

2.309432

Considering the high reliability of both models, we present the forecast results developed

on their basis for the next two years (Table 3).

Table 3.

Projected values of the balance of deposits and total resources of Uzpromstroybank

For 95% confidence intervals, t(4, 0.025) = 2.776

Years

Y

1

Growth

rate

Y

2

Growth

rate

2025 16228,3

128,7

63091,4

113,2

2026 18933,0

116,7

71106,2

112,7

Since five-year data were used in the development of the model, forecast values were

developed for the next two years. Forecasts indicate a 1.50-fold increase in the balance of bank
deposits and a 1.27-fold increase in the total volume of resources over the next two years. High

growth rates of the deposit balance indicate that positive results will be ensured in attracting

free funds of the population to the economy.


Conclusion and suggestions.

The OLS trend analysis indicates that Uzpromstroybank’s deposits and total resources

have grown robustly from 2000

2024. The estimated slope coefficients are positive and highly

significant, with R² values typically above 0.9, signifying that most of the long-term variation is

captured by the linear trend. Projected values continue this expansion through 2026, assuming
persisten

t growth rates. These results imply that the bank’s funding base is expanding, which

can support further credit growth and economic activity in Uzbekistan. This is consistent with

reports that Uzbek banks’ assets and deposits have grown strongly (e.g. incr

eases of ~10

16%

per year in real terms over recent five-year periods).

Policy implications include the need to improve deposit mobilization and diversify

funding. Even with rising trends, Uzbek banks historically rely on state funding and have weak

retail deposit bases. Continued growth of deposits would strengthen bank resilience and reduce

dependence on foreign debt. Regulators and the bank itself should promote public trust and
develop attractive deposit products (indexed rates, digital services) to mobilize household

savings, echoing World Bank recommendations.


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Limitations of this study include the simplicity of the linear trend model. Real deposit

flows can be affected by interest rates, economic cycles, and unusual shocks (e.g. regulatory

changes), which the model does not capture. For example, rising market interest rates could

slow deposit growth, as shown in U.S. data, and structural reforms (bank privatizations) may

alter future trajectories. We also assume no structural breaks or regime shifts; if, say, inflation
stabilizes or new banking technology emerges, the trend could deviate. Future research might

incorporate ARIMA models or multivariate regressions including macro variables, as in recent

Uzbek studies of banking sector liquidity. Additionally, scenario analyses (stress testing under

adverse conditions) could complement the simple forecasts.

In practical terms, the forecasts provide a benchmark for Uzpromstroybank’s planning.

Management can use these trends to budget funding needs and adjust loan growth targets. If

deposits grow faster than projected, the bank could channel additional funds into credit or

investments; if slower, it may need to attract alternative funding (e.g. interbank borrowing).
Finally, the findings should encourage policymakers to continue banking sector reforms and

foster financial inclusion, so that rapid growth in banking resources translates into sustainable

economic development.

References:

Creighton, A. (2024)

“Bank Deposit Growth to Remain Sluggish Through 2025.”

OCC On

Point (Office of the Comptroller of the Currency, December 2024)

Dubko, S. (2023)

“Key Trends in the Banking Sector.”

Newsletter No. 26 (Sep

Oct 2023),

German Economic Team

Greenwald, E., Schulhofer-Wohl, S., & Younger, J. (2023)

“Deposit Convexity, Monetary

Policy, and Financial Stability.”

Federal Reserve Bank of Dallas Research Working Paper No. 2315

Knake, S. (2023)

“Changing Forecasts –

Forecasting Change: The US market for savings

deposits in econometric models and the market for econometric models among depository

institutions, 1960s to 1980s.”

Working Paper No. 41, Institute for Advanced Study, Humboldt

University, Berlin

Ataev, J., Sarsenbaev, B., Tleuov, N., & Bisenbaev, S. (2024). Promising directions

determination of the forecast values development of agrobiochemistry services in the Aral Sea
Basin. In E3S Web of Conferences (Vol. 497, p. 03019). EDP Sciences.

Makhmudov, S. A. (2025)

“Forecasting Banking System Liquidity Using Payment System

Data in Uzbekistan.”

IHEID Working Paper No. 05-2025

World Bank (2022)

Assessing Uzbekistan’s Transition: Country Economic Memorandum

.

World Bank, Washington, D.C.

References

Creighton, A. (2024) “Bank Deposit Growth to Remain Sluggish Through 2025.” OCC On Point (Office of the Comptroller of the Currency, December 2024)

Dubko, S. (2023) “Key Trends in the Banking Sector.” Newsletter No. 26 (Sep–Oct 2023), German Economic Team

Greenwald, E., Schulhofer-Wohl, S., & Younger, J. (2023) “Deposit Convexity, Monetary Policy, and Financial Stability.” Federal Reserve Bank of Dallas Research Working Paper No. 2315

Knake, S. (2023) “Changing Forecasts – Forecasting Change: The US market for savings deposits in econometric models and the market for econometric models among depository institutions, 1960s to 1980s.” Working Paper No. 41, Institute for Advanced Study, Humboldt University, Berlin

Ataev, J., Sarsenbaev, B., Tleuov, N., & Bisenbaev, S. (2024). Promising directions determination of the forecast values development of agrobiochemistry services in the Aral Sea Basin. In E3S Web of Conferences (Vol. 497, p. 03019). EDP Sciences.

Makhmudov, S. A. (2025) “Forecasting Banking System Liquidity Using Payment System Data in Uzbekistan.” IHEID Working Paper No. 05-2025

World Bank (2022) Assessing Uzbekistan’s Transition: Country Economic Memorandum. World Bank, Washington, D.C.