Priority Areas of Development of Deposit Operations In Commercial Banks of Uzbekistan

Abstract

The development of deposit operations is essential for the stability of commercial banks and the broader financial system in Uzbekistan. As the banking sector grows, it becomes increasingly important to explore opportunities for strengthening the deposit base and expanding financial services. This article focuses on the development of deposit operations in commercial banks in Uzbekistan, analyzing key areas such as the introduction of long-term deposit products, the expansion of digital banking services, and the enhancement of financial literacy. While several studies have discussed deposit operations in the banking sector, there is a lack of research on the specific strategies needed to enhance competition and improve deposit insurance systems in the context of Uzbekistan's evolving market. The primary aim of this study is to explore strategies for strengthening the deposit base in Uzbekistan’s commercial banks by implementing new financial products and fostering a competitive banking environment. The study finds that expanding long-term deposit products, improving deposit insurance systems, and increasing financial literacy can significantly enhance the stability of the banking sector, contributing to economic growth. This article introduces an innovative approach by emphasizing the role of private banks and digital services in improving the deposit base and financial inclusion. The findings suggest that by improving competition and financial literacy, banks can attract more deposits, thus ensuring liquidity and stability, which will positively impact both the banking sector and the overall economy.