Bobir Sultonmurodov,

PhD, Head of the Green Banking

Department JSCB “Uzpromstroybank”,

Tashkent, Uzbekistan. Email:

ORCID: 0009-0007-6555-6500

Abstract: This article examines the essence of institutional changes, their significant role in strategic planning and revision of business processes. The development and structure of the banking system takes place throughout the entire period of its formation: new infrastructure elements appear; the requirements for the activities of the bank’s credit institutions change [1]. Over the past five years, various factors have influenced the structure, profitability and stability of the banking industry in industrialized countries. New technologies, financial innovations and liberalization of both national and international markets have changed the environment in which banks operate, as well as influenced the conduct of monetary policy and the fundamental stability of the financial sector. Banks have had to adapt to increased competition from other financial institutions, as well as to changes in the regulatory framework, and in some cases these changes have led to serious financial instability. In many countries, banks have responded by striving to achieve economies of scale by consolidating and expanding the range of products and services offered. Improving institutional quality is an important factor in reducing the risks of the banking system. This effect of institutions is less important in countries with good capitalization, high profits and high rates of economic growth. This effect is also more pronounced in highly liquid banking systems. It is noteworthy that higher institutional quality helps to reduce the risks of the banking system in conditions of high concentration of the banking system. It is also worth noting that institutional quality has a significant negative relationship with bank credit risk, especially in highly concentrated banking systems and in countries with high growth rates. To date, transformation remains an urgent topic for banks, the study of the main problems of lending and ways to solve them will contribute to: maintaining leadership positions in the market of investment banking services for potential customers, ensuring the continuity of their activities and obtaining a stable income.

Key words: transformation, commercial bank, international financial institutions, credit resources, banking product, attracted funds, customer orientation.

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