PROSPECTS FOR REDUCING DEPENDENCE ON BANK CREDIT THROUGH THE DEVELOPMENT OF THE CAPITAL MARKET IN UZBEKISTAN

Abstract

This article analyzes the bank-credit-dominated financing model in Uzbekistan and the scope for improving its balance by deepening the capital market. The study relies on official data from the Central Bank, the National Agency for Prospective Projects (NAPP), the National Statistics Committee, the IMF, the World Bank, and the ADB. Statistical, comparative, empirical-descriptive, and SWOT analysis methods were applied. The results show that the banking sector accounts for 94.6 percent of financial system assets, while state-owned commercial banks held 63 percent of bank assets and 67 percent of loans at the end of 2025. At the same time, during 2023–2025, equity issuance rose from UZS 189.7 trillion to UZS 265.1 trillion, and corporate bond issuance rose from UZS 1.06 trillion to UZS 3.93 trillion. The article offers proposals on lowering issuers’ costs of market access, developing credit rating and guarantee infrastructure, broadening the institutional investor base, protecting investors, and aligning state bank reform with market mechanisms.