Influencing the capital of commercial banks to their profitability

Abstract

In the banking sector, capital plays a much more specific role than in other sectors of the economy. It was revealed that the growth of credit debt does not play a significant role in the formation of profits of commercial banks in Uzbekistan, while their economic efficiency is low, despite the high proportion of risky assets in the assets of the banking system. It has been established that the factors affecting the bank's profit in commercial banks are related to inflation, risky assets of the banking system as a whole, and bank interest rates. An increase in interest rates on bank loans does not guarantee the bank's profitability, since a number of factors influence the formation of interest rates on loans, one of which is inflation. Sufficiency of volume and quality in terms of sources of capital of commercial banks play a key role in increasing their profitability.