American Journal of Business Management, Economics and Banking ISSN (E): 2832-8078 Volume 22, | March - 2024 P a g e | 105 www.americanjournal.org BANK ACTIVIST WITH FOREIGN CAPITAL PARTICIPATION IN UZBEKISTAN Bakayev Xurshid Mahmudovich +998914111441 x.bakaev@mail.ru A B S T R A C T K E Y W O R D S The banking system is an important component of the market infrastructure. Because banks provide the economy with financial resources, foreign economic communication financing, payment implementation and in the provision of various financial services to the population plays an important role. Introduction President of our state at the first stage of economic reforms "Central bank led and broadband independent commercial and private banks are two-tier creating a banking system, Republic departments of large foreign banks in the territory and favorable conditions for the opening of representative offices first-class measures to create" put in the row. Implementation of this important task based on the administrative-commandment of the purpose, adapted to the nature of the planned economy two-tier National instead of the banking system initial legal creation of the banking system foundation-on February 15, 1991 " banks and banking the Activities Act was passed. Regulation of money circulation to the Central Bank of the Republic of Uzbekistan, commercial Organization of banks, they operate the tasks of regulation and Control, Organization of the payment system were assigned.The country allowed the opening of commercial banks on the basis of Joint- Stock, cooperative and private property, as well as banks with the participation of foreign capital. To the market economy developed by the head of state after the declaration of the Republic of Uzbekistan as independent market economy based on transition principles two suitable for feature and international andases tiered: the foundation was laid for a banking system consisting of Central bank and commercial banks.On September 7, 1991, the National Bank of foreign economic activity was formed. On the territory of the countrythis is the first time that international accounts are in the bank through which it began to be implemented, the opportunity arose to concentrate the currency funds of the Republic and use them with a clear goal in mind. Gallabank, Pakhtabank, Entrepreneurbank,Like and later" Asakabank Organization of a number of specialized commercial banks banking service to enterprises in different sectors of the economy American Journal of Business Management, Economics and Banking Volume 22 March - 2024 P a g e | 106 www.americanjournal.org radically improved the performance. While the establishment of banks with the participation of foreign capital a new stage in the Independent National banking system started. Cabinet of Ministers of the Republic of Uzbekistan banking system of July 13, 1994 financial support for development by decision "on measures" commercial banks are subject to five types of taxes released. This financial privilege banks to equip with modern technologies and made it possible to strengthen the material and technical base. As a result, quality in our republic a completely new payment system has been created in terms of meeting international standards,payments began to be made in a few minutes. It is known from world experience that independent the states all had their own separate monetary system. National on the territory of our republic since July 1, 1994 currency-with the introduction of the SOM into circulation Monetary and credit of Uzbekistan and, in general, economic full independence even when conducting politics achieved. As the head of our state noted, " the national currency is the national currency of the state's independence is the main character". From the introduction of the national currency into circulation then the process of economic reforms requires a deepening of reforms in the banking system did. "Central Republic Of Uzbekistan on bank " (December 21, 1995) and "On banks and banking" (new Ed., April 25, 1996) of the laws. acceptance of the Central bank and Commerce legal status of banks, functions experience and national mentality of foreign countries advanced to the competence and introduced a number of clarifications taking into account. The central bank received the status of a body for regulating monetary relations and controlling the activities of banks. with the creation of universal commercial banks in our country and the creation of foreign capital into the banking system necessary legal for more active involvement foundations were laid. Development of private banks in our country by our government in 1997 for which a number of benefits are provided, including the share of individuals in the charter fund is not less than 50 percent private from the time of the establishment of commercial banks income tax for two years starting as a result of their exemption from payment, the bank penetration of private capital into the system activated, which, in turn, banking services led to increased competition in the market. Currency of the Central Bank of Uzbekistan policy of stability of the national exchange rate provision, inflation at an acceptable level to encourage retention and export,the fact that our country is focused on the effective management of gold and foreign exchange reserves has given its positive result. Since 2000, the currency policy has become more liberalized and established trade in foreign currencies in the over-the-counter currency market set. Authorized banks from their customers free currency funds, demand for it and based on the offer, the free course began to buy on. Uzbekistan in 2003 the international currency by accepting obligations under Article VIII of the articles of agreement of the fund, began to carry out a free conversion of the national currency on international current operas. This includes the use of external funds without attracting, it was achieved by relying on internal resources. This is noticeable in the rapid development of entrepreneurial activity in our country motivated. Currently, 29 commercial banks operate in our Republic, of which 3 state, 13 Joint-Stock- Commercial,9 are private and 4 are organized in the form of foreign capital participation. There were 9,551 banking institutions in operation and on the basis of mutual interest with the population they cooperate in every possible way. In our country, every 100 thousand adult residents.There are 49.7 American Journal of Business Management, Economics and Banking Volume 22 March - 2024 P a g e | 107 www.americanjournal.org banking institutions. International According to research by the Monetary Fund,Uzbekistan occupies a leading position among the CIS countries in this indicator. Central bank on the regulation and control of the activities of commercial banks,According to the recommendations of the Basel Committee,the transition to the use of international practice in banks pre-identification of possible problems and the occurrence of risks warning measures before arrival gave the opportunity to see. Hence, in our country during the years of independence not a single bank operating in crisis did not occur. Financial stability of the banking system depends on its level of capitalization. Therefore, our government has always been, especially in the world in the era of the financial crisis, it is special to increase the level of capitalization of banks noticed. The leading commercial banks in our country are people's bank, Microkreditbank, Agrobank, Rural Construction bank,500 billion during 2009 to the capitalization of" Asakabank", more than Rs.That's what led to positive results experts of international financial organizations they also confessed. Measures taken over the past decade, banks have achieved more than 9 times their total capital growth. The capital of the banking system today is the adequacy rate was 24.3 percent, giving,this indicator is 3 times higher than established by international standards. Financial of the banks of our country stable condition, confidence in them increase in the income of the population population and legal entities that are on the way active bank deposits of loose funds giving the opportunity to attract. Of this the proof of the population for the last ten years and deposits of enterprises in banks it can also be seen when the size increases by 30 times. To this, as well as bank deposits fully guaranteed and their first return on demand, income of the population from bank deposits from tax to be released and to be deposited declaration of the origin of funds not being done is also a reason. Population deposits in banks of Uzbekistan and the volume of deposits of legal entities increase their liquidity level it remains stable. Banking system liquidity ratio in recent years 65 above the percentage, the most required are it is more than 2 times the low level. However, most foreign countries the problem of liquidity in their banks, especially,in the context of the global financial crisis, extreme has become an urgent problem. Of the banks to maintain its stability, the states allocated funds preferentially from the budget as well as from central banks. But this economy of countries and banking system implemented due to the extreme depth of problems increased activities bring the expected results did not give. On the contrary, public debt increased, to increase the state budget deficit brought and ultimately finance the country negatively affected his system. This Is Done By Gresia,Ongoing economic crisis in Portugal, Ireland, Spain and other countries the processes are evident. Capitalization of banks of our country the level as well as the growing volume of deposits involved in their lending for the development of the economy giving the opportunity to expand in size.In the last ten years, the volume of loans allocated to the real sector of the economy is 9 times, domestic and the volume of lending from sources is 15 increased by more than equal. In particular, 85.8 percent of loans in the current period, when there is instability in the global financial market the fact that it was given to internal sources made the banks protects against the effects of external risks. Modernization of enterprises last year, technological and technical investment loans of Rs 5.76 trillion were allocated by commercial banks to the re-equipment targets. In the last five years the volume of American Journal of Business Management, Economics and Banking Volume 22 March - 2024 P a g e | 108 www.americanjournal.org such loans increased by 4 times.Long in the total credit portfolio of banks and the share of term loans is 76.8 percent organized. Such indicators indicate that banks are actively involved in investment processes. In particular, commercial banks.The purchase of a Boeing-767-300ER to upgrade the air fleet of the Uzbek Airways Mak, Ustyurt gas-chemical at the Surgil field they are involved in the financing of projects such as the construction of the complex and the peasant potash fertilizer plant. References: 1. President of the Republic of Uzbekistan 07.09.1991. PF-244."Organization of the National Bank of foreign economic activity of the Republic of Uzbekistan decree "on the release". 2. 13.07.1994 of the Cabinet of Ministers of the Republic of Uzbekistan. 362.The decision of the Republic of Uzbekistan"on measures for financial implementation of the development of the banking system". 3. 21.12.1995 of the Republic of Uzbekistan. Law No. 154-I "on the Central Bank of the Republic of Uzbekistan". 4. 25.04.1996 of the Republic of Uzbekistan. Law No. 216-I "on banks and banking activities". 5. 24.04.1997. PF-1749 "measures to promote the establishment of private commercial banks decree"on". 6. President of the Republic of Uzbekistan 05.05.2006. PF-Decree No. 3750 "on the establishment of a Joint-Stock Commercial Bank" Microkreditbank".