Volume 04 Issue 06-2024
38
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
04
ISSUE
06
P
AGES
:
38-44
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
ABSTRACT
Commercial banks provide trade finance services such as letters of credit and bank guarantees that facilitate
international trade. In addition to financing, commercial banks in Uzbekistan also play an important role in promoting
financial inclusion. They offer a range of financial products and services to individuals of all income levels, including
savings accounts, debit cards and personal loans. It will help promote financial literacy and inclusion in the country.
Commercial banks also make a significant contribution to the growth of the economy by attracting savings of the
population and business entities. They pool these funds and allow them to be used for investment in various sectors
of the economy. This will help stimulate economic growth and development.
KEYWORDS
Commercial bank, central bank, internet banking, SMM banking, gross domestic product, stock exchange, banking
services, market relations, credit, investment, liquidity, crisis period.
INTRODUCTION
In the conditions of market relations, the activities of
commercial banks are distinguished by their wide
scope. That is, as a financial intermediary in the market,
it actively participates in the redistribution of capital by
Research Article
THE ROLE OF COMMERCIAL BANKS IN THE ECONOMY OF THE REPUBLIC
OF UZBEKISTAN
Submission Date:
June 16, 2024,
Accepted Date:
June 21, 2024,
Published Date:
June 26, 2024
Crossref doi:
https://doi.org/10.37547/ijmef/Volume04Issue06-06
Yormonqulova Nargiza Ikromjon qizi
Qo’qon Universiteti o’qituvchisi
, Uzbekistan
Journal
Website:
https://theusajournals.
com/index.php/ijmef
Copyright:
Original
content from this work
may be used under the
terms of the creative
commons
attributes
4.0 licence.
Volume 04 Issue 06-2024
39
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
04
ISSUE
06
P
AGES
:
38-44
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
sectors and regions and economic subjects. At the
same time, the role of commercial banks as financial
intermediaries affects the restructuring of economic
sectors depending on the objective consumption of
production for the effective development of the
economy. Today, the improvement of personnel
management in commercial banks serves to increase
the number of new types of financial services and
expand the field of activity. Many people have simple
ideas about commercial banks. They think of it as a
place to save money, make time deposits, sign up for a
credit card, or get a loan, but commercial banks have a
highly regulated system that connects them to the
broader financial system. A bank is a building, people,
processes and services - a mechanism for raising more
capital and distribution that the management and
board of directors believe will generate the best
returns. By effectively allocating capital, the bank will
make more profit and the stock price will increase. In
this regard, the bank provides services to the above-
mentioned consumer. Temporarily free money in
society attracts funds on the basis of appropriate
conditions. It provides funds to businesses and
residents in need of additional financial resources on
the basis of repayment, term and security.
Literature analysis
A number of foreign and domestic scientists and
researchers worked to determine the place of
commercial banks in the economy. Studying their work
enriches the literature review part of our research. We
will consider some of these studies.
According to Dilmurod Mamasalievich's research, the
practice of providing consumer loans was thoroughly
studied by economists and necessary scientific
conclusions were formed.
It was explained that in 2018, a total of about 15.4
trillion soums of loans were allocated, of which the
share of consumer loans was 52.6 percent, and in 2019,
this figure decreased to 42.0 percent. According to this
statistical analysis, banks' consumer loans in order to
improve its practice, it is necessary to solve the
following problems: - lack of reliable information about
the credit history of prospective borrowers; - failure to
improve the system for assessing the creditworthiness
of consumer credit recipients; it was determined that
the supply of consumer loans is insufficient
Dilmurod Mamasalievich's research shows that as the
amount of consumer credit increases, the income level
of the population increases and the bank's resource
base is strengthened.
According to this study, it was found that the allocation
of consumer loans is very important in the activity of
commercial banks of Uzbekistan.
Decision of the President of the Republic of Uzbekistan
"On additional measures to increase the popularity of
banking services" dated 23.03.2018. No. PQ-3620, it
should be noted that the necessary legal and legal
framework for its implementation has been formed,
practical economic incentives and innovations and
Volume 04 Issue 06-2024
40
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
04
ISSUE
06
P
AGES
:
38-44
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
preferences have been created for its active
development, the licensing system has been
significantly simplified and liberalized, and the
modernization of the banking system is complete.
The main purpose of the research is aimed at the
development of "Internet banking" and "Sms
banking". at his place of work or in other convenient
conditions:
- transfer of payments;
- monitoring the stages of payment;
- we see that all operations, such as receiving all
reports, are made available at any time. It is assumed in
the study that through Internet banking, the client can
connect to the bank's website from his workplace and
see the money coming into his account, prepare
money transfers and send them to the bank, which
makes it convenient for clients.
According to the research of Dr. Mritunjay Kumar
Manish, the role of commercial banks in economic
growth depends on their role as financial
intermediaries. The main objective of this study is to
critically analyze the role of commercial banks in
economic growth in India. This study shows how credit
and loans affect the gross domestic product (GDP) and
consequently the rate of economic growth in India. It
also helps to increase the level of employment which
contributes to the economic development of the
country. .
Several scholars have studied the relationship between
commercial banks and economic growth. Kalpana and
Rao believe that the measurement of economic
growth is difficult to answer. Because developed
countries combine the three component indicators of
the economy, commercial banks affect the economy
through the growth and decrease of credit and
investments. Commercial banks are the key to the
economy (Ananwude and Okoye)"
Levine St. Paul (1997) added the importance of liquid
assets of commercial banks. Economic growth and
financial improvement of Banks increases due to
activities such as stock marketing and economic
management. At the same time, the increase of banks
emphasizes the importance of their place in the
economy. It is important to increase financial
investments in banks for the realization of economic
development. Smith (1991) asserts that this is because
customers are encouraged to invest their savings in the
economy and this is an incentive to realize economic
growth.
Angela Romana, Alina Kamelia Sargub Central and
Europe countries have studied the increase and
decrease in the level of liquidity of banks and the
impact on the country's economy.
The strategies carried out by banks are considered a
factor affecting the increase or decrease of their
liquidity level. During the crisis, the policy of banks is
mainly risk-taking.
Methodology. We selected the necessary variables for
the statistical analysis of our research within the
framework of the banks of Uzbekistan; We selected
Volume 04 Issue 06-2024
41
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
04
ISSUE
06
P
AGES
:
38-44
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
the total number of banks, allocated loans, deposited
deposits (2017-2021) and studied the impact of
commercial banks on the economy of Uzbekistan in
these periods. Accordingly, the number of total banks
in Uzbekistan, total capital, allocated We studied 5-year
statistical data on loans and deposits.
RESULTS
According to the situation in 2017, there were 28 banks
in Uzbekistan, the total capital of which was 23,725
billion soums. The amount of allocated loans was 110.6
trillion soums. Deposits made amounted to 59.6 trillion
soums. An increase in the amount of deposits and
allocated loans to commercial banks will lead to a
further increase in business activity and an increase in
the income of the population. In 2017, the gross
domestic product (GDP) of the Republic of Uzbekistan
at current prices exceeded 249.13 trillion soums, and at
the end of 2017, the GDP per capita was 7.69 million
soums. According to the schedule, the number of
banks in 2021 was 33, and the total capital increased to
70918 billion soums, allocated credit increased to 326.4
trillion soums, and deposits increased to 156.2 trillion
soums. In 2021, the volume of GDP in Uzbekistan was
734.6 trillion soums or 69 billion dollars.
Table 1
The total number of commercial banks in the Republic of Uzbekistan, capital,
allocated loans and deposited deposits
Years
Banks Total
number
Total capital
Allocated loans
Deposits
2017
28
23725mlrd soum
110.6 trln soum
59.6 trln soum
2018
29
26679 mlrd soum
167.4 trln soum
70 trln soum
2019
30
51031 mlrd soum
211.6 trln soum
91 trln soum
2020
32
58351 mlrd soum
277 trln soum
114.7 trln soum
2021
33
70918 mlrd soum
326.4 trln soum
156.2 trln soum
It can be seen that the number of banks has increased
by 0.16% in 5 years, the total capital has increased by 3.4
times, the volume of allocated loans has increased by
2.9 times, and the volume of deposits has increased by
2.6 times. This, in turn, contributes to the growth of
entrepreneurship. The main part of these indicators is
19.5 trillion in January-December 2021 at the expense of
loans from commercial banks and other debt funds.
Volume 04 Issue 06-2024
42
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
04
ISSUE
06
P
AGES
:
38-44
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
soums of investments in fixed capital were absorbed
and amounted to 110.9% compared to 2020. The share
of investments absorbed at the expense of commercial
bank loans and other debt funds in the total
investments in fixed capital in the Republic is the same
as in 2020. increased by 0.4 percentage points
compared to the indicator and made 8.0%.
It is being studied that the income level of the
population of our Republic is increasing, the resource
base of commercial banks is strengthening, and the
interest rates of loans are decreasing, which allows the
population to use consumer loans of commercial
banks.
Figure 2. Total capital of banks in 2017-2021
According to this table, in 2017, the total capital of SQB
Bank was 2,463,380,580 soums, and in 2021, it reached
6,944,601,000 soums, i.e. it increased by 35%. It can be
seen that SQB Bank has grown significantly over the
past 5 years. In 2017, the total capital of Capital Bank
amounted to 3,780,366,069 soums. In 2021, this figure
reached 12,012,857,604 soums. It can be seen that the
total capital of Kapital Bank increased by 31% over 5
years. The total capital of the National Bank in 2017 was
4,588,065,865 soums. This indicator has reached
14,768,714,040 soums by 2021. From this we can see
that the total capital of the National Bank increased by
31% in 5 years. Among these 3 banks, the capital of the
National Bank was the largest in 5 years, its capital was
Volume 04 Issue 06-2024
43
International Journal Of Management And Economics Fundamental
(ISSN
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2771-2257)
VOLUME
04
ISSUE
06
P
AGES
:
38-44
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
14,768,714,040 soums. The increase in these indicators
of banks indicates that the income of the population of
the Republic of Uzbekistan has increased. According to
the results of our analysis, the role of commercial
banking in the economy is very large and important.
CONCLUSION
Commercial banks of the Republic of Uzbekistan play a
decisive role in the country's economy. They act as
intermediaries between savers and borrowers,
facilitating the flow of funds and promoting economic
growth.
Commercial banks in Uzbekistan contribute to financial
inclusion by providing access to banking services to
individuals and businesses throughout the country. It
helps
stimulate
savings,
investment
and
entrepreneurship, which are necessary for economic
development.
In recent years, Uzbekistan has implemented serious
reforms aimed at increasing the stability and efficiency
of the banking sector. As a result of these reforms,
competition has increased, risk management practices
have improved, and modern banking technologies
have been introduced.
Lending activities of commercial banks support various
sectors of the economy, including agriculture,
production, construction, small and medium-sized
enterprises. By providing loans and credit, banks
contribute to business expansion, job creation and
overall economic growth.
The government of Uzbekistan has implemented a
policy of encouraging crediting of priority sectors and
supporting strategic sectors. This encouraged banks to
invest in key sectors such as infrastructure
development, energy and export-oriented industries,
thereby encouraging economic diversification.
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44
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
04
ISSUE
06
P
AGES
:
38-44
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
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