Important Aspects Related To Foreign Exchange Operations Of Commercial Banks

Normet Saparboyevich Ernazarov,Oybek Odilovich Xudoyorov

doi:10.37547/tajas/volume03issue04-22

Abstract

This article provides analytical, critical and econometric analysis of the factors influencing the off-balance sheet operations of commercial banks of the Republic of Uzbekistan. Factors influencing documentary letters of credit, currency forward transactions, bank guarantee-related transactions, currency spot, currency futures and options from off-balance sheet operations, which are highly profitable for commercial banks, were studied.

Highlights

A number of financial institutions, such as the Central Banks of the developed countries of the world, the International Monetary Fund, the Basel Committee, have conducted research on the development of off-balance sheet operations of commercial banks
The results of research by a number of Uzbek economists show that the level of diversification of foreign exchange reserves of commercial banks in the country is very low, they make up the bulk of foreign exchange
We conducted an econometric analysis in order to examine the extent to which the volume of off-balance sheet transactions of commercial banks is impacted by factors

Summary

Introduction

A number of financial institutions, such as the Central Banks of the developed countries of the world, the International Monetary Fund, the Basel Committee, have conducted research on the development of off-balance sheet operations of commercial banks. These studies are scientifically based on the integrated use of documented forms and types of letters of credit, the expansion of commercial bank guarantee operations, foreign exchange. Options and futures, the role of off-balance sheet operations in risk management of commercial banks In these studies, the issues related to the lack of opportunities for the development of off-balance sheet operations in the context of high levels of financial risk in the activities of commercial banks, low level of diversification of foreign exchange reserves of banks remain relevant. Ensuring the fulfillment of these tasks remains one of the most pressing issues today

Methods

Results

Discussion

Conclusion