PROSPECTS FOR THE DEVELOPMENT OF THE BANKING SYSTEM OF THE REPUBLIC OF UZBEKISTAN

This article is devoted to highlight the current obstacles and challenges in the development of the banking and financial system of the Republic of Uzbekistan and their elimination through promising integration strategies. The predominance of state participation in the banking sector is considered to be one of the main causes of existing crucial issues in the current banking system, such as high level of liquidity and currency risks, an extreme increase in free market rates till almost unaffordable level for private sectors due to uncovered preferential credits, as well as, a weak competitive environment among commercial banks and this review is supported with both theoretical and statistical data on the basis of real sector practice and recommendations of international experts. The optimal and alternative solutions to these problems are based on the main directions of development identified in the Strategy for Banking Reform of the Republic of Uzbekistan during 2020-2025s”, developed by specialists in the banking and financial sector of the country in collaboration with World Bank experts, and analyzed on the basis of term distributions.