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M. R. Kulmetov

The Importance Of Using The Herfindal-hirschman (hhi) Index In Determining The Level Of Competition Between Banks In Uzbekistan


Competition between banks plays a significant role in the effective functioning of the financial market and is one of the important links in the proper conduct of financial policy. During the gradual reform of the financial sector in Uzbekistan, a number of measures have been taken, and as a result, special attention is paid to the conduct of advanced banking business and strengthening the competitive environment in this sector. Of the 31 banks operating in Uzbekistan, 13 have state participation in their capital, the capital of which is more than 87% of the total capital of the banking system, and their assets are more than 85% of total assets (PF-5992, 2020).

As noted by the President of the Republic of Uzbekistan Shavkat Mirziyoyev in his Address to the Oliy Majlis on December 29, 2020 “The focus will be on the widespread introduction of digital technologies in the activities of banks. In 2021, we are preparing for the privatization of Sanoatqurilishbank, Asaka Bank, Ipoteka Bank, Aloqabank, Turonbank and Qishloq Qurilish Bank. The state's stake in at least one major bank will be sold in full to strategic investors.

It is clear that reducing the share of the state in large banks is to reduce the level of monopolization between commercial banks. Critical analysis of the literature on the subject The world practice of controlling the concentration limit in the banking market uses the Herfindal-Hirschman median value index.