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

Abstract

This article examines the formation, evolution, and prospects for the development of the banking system in the Republic of Uzbekistan from the moment of independence in 1991 to the present day. The study identifies three key stages of development: the establishment of a national banking system (1991–2003), the period of consolidation and structural adjustment (2003– 2017), and the era of liberal reforms and digitalization (2017–present). The article analyzes the legislative framework, institutional transformations, and macroeconomic factors that have shaped the current structure of the banking sector. Particular attention is paid to the privatization of state-owned banks, the expansion of financial inclusion, and the integration of digital technologies into banking services. The author identifies the principal challenges confronting the sector, including the continued dominance of state capital, insufficient development of rural banking infrastructure, and low levels of financial literacy among the population. Based on the findings, strategic recommendations are proposed for the further modernization of Uzbekistan's banking system in accordance with international standards.