ANALYSIS OF THE CURRENT STATE OF ATTRACTION OF INVESTMENTS IN COMMERCIAL BANKS OF THE REPUBLIC OF UZBEKISTAN IN THE PROCESS OF TRANSFORMATION

Аннотация

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 1.8times, and the volumeofannual loan allocation has doubled. It was also thefirst 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 forinvestors. 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 introductionof amanagement culture intothebankingsystem based oninternational 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 https://ijmri.de/index.php/jmsi volume 4,issue4,2025 401 Uzbekistan for 2020-2025”1 PD-5992 was adopted, it consists in the implementation of complex changes in the banking system aimed at increasing theinvestment attractiveness of banks and the introductionof newstandards ofbanking 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 thecountry. At thesametime, thecurrent case analysis shows that there are stillproblems. In somebanks, 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 oftheiractivities, and thereduction of stateparticipation to aminimum. 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