ISSN:
2181-3906
2025
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 4 / ISSUE 11 / UIF:8.2 / MODERNSCIENCE.UZ
185
WAYS TO IMPROVE THE BANKING SYSTEM OF UZBEKISTAN
Ziyadullayeva Mohira Tagayevna
assistant teacher of the Samarkand institute of economics and service
Kurasheva Sumbula Maxsudovna
a student of the Samarkand Institute of Economics and Service, Group 324, The World Economy
and International Economic Relations.
https://doi.org/ 10.5281/zenodo.17535796
Abstract.
This work studies ways to improve the banking system in the Republic of
Uzbekistan, existing problems and proposals for their solution. The work analyzes the current
state of the banking system of Uzbekistan, considers such urgent issues as increasing the
efficiency of commercial banks, introducing digital technologies, improving the quality of
financial services and increasing the financial literacy of the population. Also, based on the
experience of foreign countries, proposals and recommendations for the further development of
the banking sector have been developed. Based on the results of the research, practical
proposals have been put forward aimed at forming a stable and competitive banking system in
Uzbekistan.
Keywords:
banking system, financial stability, digital banking services, commercial
banks, reforms, Uzbekistan, financial literacy.
ПУТИ СОВЕРШЕНСТВОВАНИЯ БАНКОВСКОЙ СИСТЕМЫ
УЗБЕКИСТАНА
Аннотация.
В данной работе рассматриваются пути совершенствования
банковской системы Республики Узбекистан, существующие проблемы и предложения по
их решению. В работе проведён анализ текущего состояния банковской системы
Узбекистана, рассмотрены такие актуальные вопросы, как повышение эффективности
деятельности коммерческих банков, внедрение цифровых технологий, улучшение
качества финансовых услуг и повышение финансовой грамотности населения. Также, на
основе опыта зарубежных стран, разработаны предложения и рекомендации по
дальнейшему развитию банковского сектора. По результатам исследования выдвинуты
практические
предложения,
направленные
на
формирование
устойчивой
и
конкурентоспособной банковской системы Узбекистана.
Ключевые слова:
банковская система, финансовая устойчивость, цифровые
банковские услуги, коммерческие банки, реформы, Узбекистан, финансовая грамотность.
Introduction
In recent years, significant changes have taken place in Uzbekistan’s banking system.
The economic reforms initiated by the President of the Republic of Uzbekistan, Shavkat
Mirziyoyev, along with the liberalization of the financial sector and integration with the global
financial system, have had a major impact on the country’s banking sector. However, it cannot
be said that there are no shortcomings or problems within the banking system. Therefore, this
article will thoroughly examine the existing shortcomings and issues in the banking sector.
In Uzbekistan, great attention is being paid to the banking system, as emphasis is placed
on reforming and modernizing it.
ISSN:
2181-3906
2025
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 4 / ISSUE 11 / UIF:8.2 / MODERNSCIENCE.UZ
186
On May 12, 2020, the President of Uzbekistan adopted Resolution No. PQ-5992, which
approved the Strategy for Reforming the Banking System for 2020–2025.
1
This strategy was developed jointly by the Central Bank and the Ministry of Finance, in
cooperation with the World Bank, based on an analysis of the banking systems of other countries
and accompanied by conclusions and recommendations. The strategy pays special attention to
the current problems and urgent issues identified within the banking system. In particular, due to
the high level of state participation in the banking sector, financial and human resources are
being used inefficiently, and corporate governance systems are not properly established. State-
owned banks often act as traditional "development banks" by providing loans at interest rates
below market levels to priority programs, sectors, and enterprises with state ownership. This has
led to a sharp increase in lending volumes, which in turn negatively affects key indicators of
bank stability such as liquidity and capital adequacy. Furthermore, a high degree of
globalization, along with the concentration of loans and deposits in large enterprises and certain
sectors of the economy, has made the banking system vulnerable to currency, credit, and
liquidity risks. The business models of state-involved banks are mainly focused on serving
corporate clients, while their role as financial institutions is relatively limited. In addition, the
underdevelopment of innovation and information systems has resulted in a low level of financial
inclusion, highlighting the need for large-scale reforms within the system.
In recent years, Uzbekistan’s banking system has undergone significant reforms, and the
processes of integration with international financial institutions have accelerated. However, a
deeper analysis of the current situation reveals that there are still unresolved problems and
untapped opportunities within the system. The diversification of services provided by banks
remains insufficient. Most commercial banks still mainly offer traditional services such as
lending, accepting deposits, and providing settlement and payment operations. The process of
digital transformation is progressing slowly. A large part of the population, especially clients
living in remote areas, cannot yet access modern banking services. To address this issue, banks
need to strengthen cooperation with fintech companies, create innovative financial products, and
widely implement “digital financial literacy” programs. In credit policy, the risk assessment
system is not operating effectively. This is especially evident in the difficulties faced by small
businesses and startups in obtaining loans. It is necessary to introduce modern methodologies for
assessing creditworthiness, such as artificial intelligence-based credit scoring systems. Doing so
would not only improve the quality of the credit portfolio but also ensure more efficient
allocation of banking resources. The level of interbank competition remains low, and tariffs for
many services continue to be relatively high. To strengthen the competitive environment, it is
important to create more favorable conditions for foreign investors and increase the share of the
private sector in the banking industry. Enhancing the attractiveness of Uzbekistan’s market for
international banks would help introduce innovative financial technologies and modern
management practices. The level of integration between the banking system and the real sector
of the economy also remains low. Banks tend to focus on short-term financing, which limits the
implementation of large-scale investment projects.
ISSN:
2181-3906
2025
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 4 / ISSUE 11 / UIF:8.2 / MODERNSCIENCE.UZ
187
Therefore, it is necessary to form a long-term resource base by attracting pension funds,
insurance companies, and other institutional investors to the banking sector. In addition, it is
essential to pursue a more active policy aimed at increasing financial inclusion—that is, ensuring
access to banking services for all segments of the population. According to statistical data, the
share of people without bank accounts is still significantly high. This, in turn, contributes to the
persistence of a large informal economy.
Conclusions and suggestions
In conclusion, improving Uzbekistan’s banking system is a crucial factor in ensuring
sustainable economic growth and creating a competitive financial environment that meets
international standards. Over the past few years, large-scale reforms have been implemented to
modernize the sector, strengthen market principles, and expand integration with the global
economy. Despite these achievements, several challenges remain that require systematic and
innovative solutions.
Further development should focus on accelerating digital transformation. The use of
modern financial technologies, expansion of online and mobile banking, and improvement of
cybersecurity will enhance service quality and accessibility, especially for rural populations. It is
also essential to improve credit policy through advanced risk assessment methods, including
artificial intelligence–based scoring systems. This will increase the efficiency of credit allocation
and ensure better support for small and medium enterprises.
Strengthening financial inclusion is another key priority. Expanding access to banking
services, promoting financial literacy, and encouraging the use of non-cash transactions will
reduce the informal economy and foster greater public trust in financial institutions. At the same
time, increasing competition in the sector by attracting foreign investors and supporting private
banks will stimulate innovation and bring the system closer to global standards.
Developing long-term funding sources is equally important. Cooperation with pension
funds, insurance companies, and institutional investors will help form a stable financial base for
investment projects. Additionally, continuous training and development of qualified banking
specialists are vital for maintaining progress and efficiency in the system. Overall, consistent and
innovative reforms—centered on digitalization, transparency, financial inclusion, and human
capital—will allow Uzbekistan’s banking system to become more stable, modern, and
internationally competitive.
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ISSN:
2181-3906
2025
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 4 / ISSUE 11 / UIF:8.2 / MODERNSCIENCE.UZ
188
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