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ANALYSIS OF THE CURRENT STATE OF ATTRACTION OF INVESTMENTS IN
COMMERCIAL BANKS OF THE REPUBLIC OF UZBEKISTAN IN THE PROCESS
OF TRANSFORMATION
Sharipova Nigina Djurakulovna
Teacher of Samarkand Institute of Economics and Service
Annotation:
The process of reforming the banking system and transformation in the Republic of
Uzbekistan has become one of the priorities of economic policy in recent years. As part of this
process, special attention is paid to attracting foreign and domestic investments in commercial
banks. The main goal of the transformation is to transform state – owned banks into financial
institutions based on market principles, financially stable, competitive and attractive to investors.
This article will provide feedback and feedback on the analysis of the current state of attraction
of investments in commercial banks of the Republic of Uzbekistan in the process of
transformation.
Keywords:
Uzbekistan, commercial banks, transformation, investment, Eurobond, mortgage
Bank, OTP Bank, digital technologies, international rating, financial stability, privatization.
The transformation process of the commercial banks of the Republic of Uzbekistan has become
an important direction in economic reforms in recent years. This process is aimed at improving
the financial stability of banks, improving the management system, strengthening their
competitiveness and attracting foreign investment. In recent years, the capital of banks has
increased by 1.8 times, and the volume of annual loan allocation has doubled. It was also the first
time that four banks issued Eurobonds, attracting $ 1 billion in resources from international
capital markets. The Mortgage Bank attracted a strategic foreign investor - OTP Bank of
Hungary. 13 new private banks were established, prestigious banks of Hungary, Kazakhstan and
Georgia began to operate in Uzbekistan. During the transformation process, banks are actively
working in areas such as ensuring financial openness, wide implementation of digital
technologies, obtaining assessments from international rating agencies and creating a favorable
environment for investors.
Currently, several large state banks are actively involved in the transformation process in
Uzbekistan. Among them are financial institutions such as Asaka Bank, Agrobank and Micro
Kreditbank. In these banks, reforms aimed at attracting foreign investment and improving
corporate governance are being implemented in stages. For example, during the transformation
process of a Mortgage Bank, the European bank for reconstruction and Development (EBRD),
the International Finance Corporation (IFC) and other international financial institutions invested
in this bank. This played an important role not only in financial support, but also in the
introduction of a management culture into the banking system based on international standards.
In recent years, in order to promote the development of the private sector in our country, to
radically transform the banking sector to improve the investment attractiveness of banks, the
popularity and quality of banking services, on May 12, 2020, the decree of the president of the
Republic of Uzbekistan “on the strategy for reforming the banking system of the Republic of
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Uzbekistan for 2020-2025”
PD-5992 was adopted, it consists in the implementation of complex
changes in the banking system aimed at increasing the investment attractiveness of banks and the
introduction of new standards of banking services.
The transformation process serves to increase investor confidence. In particular, banks are
implementing measures such as ensuring financial openness, adapting the audit system to
international standards, and strengthening the credit risk management system. At the same time,
their receipt of ratings from international rating agencies is also increasing investment
attractiveness. At the moment, the amount of foreign investment through the banking sector is
increasing in Uzbekistan, which indicates the presence of a positive attitude towards the reforms
carried out in the country.
At the same time, the current case analysis shows that there are still problems. In some banks, the
quality of the debt portfolio remains low, digital services are not sufficiently developed, and
employee qualifications do not fully meet the international level. Also, state control over some
banks remains high, preventing them from functioning as fully independent market entities.
Therefore, the next stage of reforms is the complete privatization of banks, further liberalization
of their activities, and the reduction of state participation to a minimum.
In general, commercial banks of Uzbekistan are at an active stage of the transformation process,
which gives significant positive results in attracting foreign investment. Banks are implementing
strict reforms towards achieving financial stability, improving the quality of services and
integrating into the international financial system. If the transformation continues, this process
will serve not only to strengthen the banking sector, but also to attract large-scale investments to
the economy of Uzbekistan, develop the private sector and increase the competitiveness of the
financial system.
The process of transformation of commercial banks in the Republic of Uzbekistan includes
several main areas, each of which is aimed at making the banking sector modern, competitive
and attractive for investors. By reforming the management system of banks, strategic decision-
making mechanisms are being improved. This, in turn, serves to make the activities of banks
more efficient and transparent. And the introduction of the principles of corporate governance
regulates the relations between stakeholders, including shareholders, customers and employees,
in the activities of banks. These principles play an important role in achieving the strategic goals
of banks.
By ensuring financial openness, banks provide complete and accurate information about their
activities, which increases the confidence of investors and customers. As a result of the
widespread use of digital technology, banking services are fast, convenient and safe, and are
offered to suit the needs of customers. These technologies also help to reduce the operating costs
of banks.
By obtaining assessments from international rating agencies, banks demonstrate their financial
stability and reliability, which is an important indicator for foreign investors. And creating a
favorable and stable environment for investors is an important factor in attracting investments in
the banking sector, through which the stable growth of the economy is ensured. In general,
reforms in these areas serve to improve the competitiveness of the banking sector of Uzbekistan,
improve the quality of financial services and ensure its integration into the international financial
system.
1
Decree of the president of the Republic of Uzbekistan No. 12.05.2020 PD-5992 “2020-2025 yillarga mo‘ljallangan O‘zbekiston
Respublikasining bank tizimini isloh qilish strategiyasi to‘g‘risida”
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In conclusion,
the transformation process of commercial banks of Uzbekistan serves to
strengthen the financial sector, improve the quality of services and ensure integration into the
international financial system. Measures such as an increase in the volume of capital and credit
allocation of banks, the involvement of foreign investments, the introduction of digital
technologies and the provision of financial openness serve to increase the competitiveness of the
banking sector. In the future, stable development of the banking sector will be ensured by the
privatization of banks, strengthening cooperation with international rating agencies and creating
a more favorable environment for investors.
LIST OF REFERENCES:
1.
Decree of the president of the Republic of Uzbekistan No. 12.05.2020 PD-5992 “2020-
2025 yillarga mo‘ljallangan O‘zbekiston Respublikasining bank tizimini isloh qilish strategiyasi
to‘g‘risida”
2.
President of the Republic of Uzbekistan: transformation processes in the banking system
were considered.
https://president.uz/oz/lists/view/6875
3.
B.Botirov, From Reform to ROI: Why Uzbekistan is Gaining Ground as a Top
Destination
for
Global
Investors.
11.04.2025.
https://www.finextra.com/blogposting/28268/from-reform-to-roi-why-uzbekistan-is-gaining-
ground-as-a-top-destination-for-global-investors
4.
Sharipova Nigina Djurakulovna. (2025). ANALYSIS OF THE OBLIGATIONS OF A
COMMERCIAL BANK.
Ethiopian International Journal of Multidisciplinary Research
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220–222.
5.
Sharipova Nigina Jo`rakulovna. (2025). ANALYSIS OF ASSETS AND LIABILITIES
OF A COMMERCIAL BANK.
Ethiopian International Multidisciplinary Research Conferences
,
155–156.
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Н.Д.
ВАЛЮТНАЯ
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РЕСПУБЛИКИ УЗБЕКИСТАН. (2025).
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