Fattakhova Munisa
Senior Lecturer,”Banking” Dpt.
Tashkent state university of economics.
Email: [email protected]
ORCID: 0009-0008-9166-908X
JEL Classification: G21, E5
Abstract: The article examines the prospects for the development of such a necessary element of the development of the banking system as interbank competition. In the modern economy of Uzbekistan, interbank competition plays a key role in stimulating innovation, reducing the cost of banking services and improving the quality of customer service. However, despite its importance, the existing legal framework does not provide adequate regulation of this area, which jeopardizes further development and healthy competition between banks. This situation not only reduces the efficiency of the banking system, but also slows down the process of introducing innovative financial products and services, which ultimately affects consumers. Most segments of the financial market of Uzbekistan are monopolies and oligopolies with a competitive environment. Almost all sectors are experiencing problems with the development of competition, especially banking. Now there is a low level of competition in all main market segments: acquiring, card payments, transfers, lending, raising funds from citizens. At the moment, one of the promising areas of activity of the bank is Islamic banking. Today it is obvious that Islamic finance can play an important role in the development of the country’s national financial sector, the emergence of new promising directions and increasing the investment attractiveness of the state. Therefore, the financial authorities of Uzbekistan need to intensify work on preparing the necessary legislative norms for the implementation of this instrument. Another step in the development of competition should be the regulation of ecosystems both on the basis of banks and on the basis of technology companies. Large banks have more financial opportunities to automate processes, develop technologies and hire staff; not all projects pay off, but this allows them to occupy new niches and conquer the market. Also, one of the most significant and difficult areas for developing competition in the banking sector is increasing the financial literacy of the population.
Keywords: interbank competition, competitive environment antitrust regulation, Islamic finance, ecosystems, large banking players