Egamova Mahfurat Esanovna
PhD., Assoc. Departments “Banking”
Tashkent Financial Institute
ORCID ID: https://orcid.org/0000-0001-5451-2827
Abstract. The experience of foreign countries shows that privatization makes it possible to achieve higher benefits for firms through increased efficiency. In this article, we have studied all the advantages and tried to find disadvantages in the process of bank privatization. The study was conducted based on foreign experience of developed countries, as well as data from commercial banks of the Republic of Uzbekistan. A panel regression model is used to study the impact of privatization on the profitability of the entire banking system, and its results show that privatization has a positive and significant impact on the profitability of banks. Parametric and non-parametric tests are conducted for two purposes: to compare the performance of privatized banks with private and state-owned banks, and to compare the performance of privatized banks in the periods before and after privatization. The results show that there are significant differences during these two periods. Comparison of the performance of privatized banks in the periods before and after privatization with state and private banks shows that the performance of privatized banks is higher than that of state banks and almost similar to private banks.
Keywords. privatization, commercial bank, profitability, efficiency, private banks, competition