Bankruptcy of Securities Begins With the Implementation of Additional Issuance Operations in Developing Countries
DOI:
https://doi.org/10.51699/economics.v38i1.337Keywords:
Central Bank, Commercial Bank, monetary policy, monetary instrumentsAbstract
This study investigates the underdeveloped state of emission operations with securities by commercial banks in Uzbekistan, with a pronounced reliance on deposits and foreign loans, unlike the practices implemented in the developed economies. The global upward trend in securities based resource mobilization has made little headway with Uzbek banks due to a critical knowledge gap in adapting global strategies to local realities. The research tests financial reports with a mixed methods approach and uses portfolio theory to perform risk and return analysis. However, compared to substantially higher figures in developed nations, banks in Uzbekistan show security based liabilities amounting to no more than 2.4% of the liabilities of the banks. The evidence shows that strategic improvements in securities management, including active and passive portfolio strategies, can improve liquidity, profitability, and financial stability. Apart from the regulatory and technical implications for the banking sector in Uzbekistan, there are implications for the policymakers and the banking practice which have advocated that the banking practices of Uzbekistan be reformed into international banking standards and to develop a robust and diversified financial ecosystem.
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