Yuldashev Sanjarbek Arslon Š¾āgāli
Independent researcher at the Department of Econometrics,
Tashkent State University of Economics.
Email: sanjaryuldash2258@gmail.com
Abstract: The article provides a relatively simple and well-founded description of the functioning of the modern banking system and explores its applicability within an intertemporal general equilibrium model. The āBank-Competition Modelā is substantiated as a systemic framework that cannot be replaced by simple relations such as money multipliers. Based on the econometric analysis of the movement of key financial instruments within the banking system, the theoretical foundations of the concept have been developed. Furthermore, the study theoretically examines advanced economic and mathematical methods used in modeling banking activities ā including the Salop, MontiāKlein, HolmstrƶmāTirole, Bertrand, Diamond, and Cournot models ā and scientifically demonstrates their role in shaping the competitive environment among banks. The results of the article can be applied to enhance the digitalization, competitiveness, and monetary policy efficiency of the banking system.
Key words: banking activity, modeling, the Salop model, the Holmstrƶm and Tirole model, the MontiāKlein model for identifying monopolistic banks, the oligopoly model, Cournotās competition model, the Bertrand approach.