Page 1 of 8

European Journal of Business &

Social Sciences

Available at https://ejbss.org/

ISSN: 2235-767X

Volume 07 Issue 05

May 2019

Available online:https://ejbss.org/ P a g e | 672

A study on factors influencing the scale-up of investment operationsof

commercial banks with shares of enterprises of Uzbekistan

Nargiza Muzaffarovna Babayeva - associate Professor with a PhD of Kokand state

pedagogical institute,

Avazbek Azizovich Turgunov – master's student of Banking and Finance Academy

of Uzbekistan,

Husan Muzaffarjon ugli Begmatov– student of bachelor degree of Tashkent

Institute of architecture and construction

Abstract: The article studies the factors influencing the expansion of the scale

of investment operations of commercial banks with shares of joint-stock

enterprises of Uzbekistan and provides recommendations for improving the

investment and financial infrastructure of Uzbekistan.

Keywords: highly integrated corporate structures, stock returns, financial

markets, investment operations, factor ranking, and market internationalization.

Over the years of independence, Uzbekistan has gained some experience in the

creation and operation of various types of highly integrated corporate structures

(HICS). According to the study, in most of them the role of banking institutions,

unfortunately, is limited to the functions of traditional banking, accounting or

settlement centers for their operations in the domestic and foreign markets. The

absence of banks and other financial institutions in the structure of HICS does not

allow to actively use the necessary financial resources, reduces their investment

attractiveness, and slows down the pace of modernization of production. The

increasing role of banks in the part of highly integrated corporate enterprises due to

Page 2 of 8

European Journal of Business &

Social Sciences

Available at https://ejbss.org/

ISSN: 2235-767X

Volume 07 Issue 05

May 2019

Available online:https://ejbss.org/ P a g e | 673

the increasing need in forming a balanced industrial policy aimed at the integration

of industrial and financial capital with the aim of providing new quality of

economic growth and the conquest of Uzbekistan's rightful place in the

international social division of labor. The timely formation of this new form of

management for Uzbekistan is also caused by the need for the speedy transfer of

state assets in the form of state shares of privatized enterprises into the hands of

real owners who are able to organize their more effective use.

In this regard, the timely formation of a network of highly integrated corporate

enterprises with the participation of commercial banks is a promising measure to

improve the efficiency of public production, strengthen the stock market and

protect domestic producers. The need to increase the participation of banks in the

HICS is also dictated by the growing interest of foreign strategic investors in a

number of basic sectors of the economy of Uzbekistan. Therefore, in the context of

globalization and internationalization of financial markets, the creation of a wide

network of HICS in the Republic is not only a natural step in the development of

the system of organizational and legal forms of social production, but also a

necessary stage of institutional strengthening of the reorganization of the real

sector of the economy of Uzbekistan.

At the same time, there is a need to study the factors influencing the expansion

of the scale of investment operations of commercial banks with shares of joint- stock enterprises of Uzbekistan. But this problem belongs to the category of not

amenable to formalization, as it provides ranking factors in the degree of influence

on the subject under study.

In these studies, it was the case when the lack of statistical data, factual material

did not allow to formalize the task and identify the main factors influencing the

expansion of the scale of investment operations of commercial banks with shares

of joint-stock enterprises of the country.