Current Analysis and Current Issues of Ensuring the Financial Stability of the Banking System in Uzbekistan

Abstract

This paper provides a current analysis of the financial stability of the banking system in Uzbekistan, focusing on recent issues and challenges. With the ongoing economic reforms and liberalization efforts in Uzbekistan, the banking sector plays a crucial role in supporting economic growth and development. However, several factors pose risks to the stability of the banking system. These include asset quality deterioration, liquidity constraints, inadequate risk management practices, and external shocks such as the COVID-19 pandemic. The paper reviews recent regulatory and supervisory measures implemented by the government and the Central Bank of Uzbekistan to address these challenges and strengthen the resilience of the banking sector. Additionally, it discusses ongoing initiatives to enhance financial inclusion, promote digitalization, and improve corporate governance within banks. Despite progress made, the paper identifies areas requiring further attention, such as enhancing transparency, addressing legacy issues, and fostering a culture of compliance and risk awareness. Overall, the analysis underscores the importance of continuous monitoring, proactive regulation, and prudent risk management practices in ensuring the long-term stability and sustainability of Uzbekistan's banking system amid evolving domestic and global dynamics.