IMPROVING THE MECHANISMS FOR ASSESSING INTERBANK COMPETITION IN THE DIGITAL BANKING SERVICES MARKET
DOI:
https://doi.org/10.5281/zenodo.21358393Keywords:
interbank competition, digital banking, fintech, market concentration, HHI, Lerner Index, IBKBM-2026.Abstract
This study examines interbank competition in Uzbekistan under the expansion of digital banking
services. The analysis uses the Herfindahl–Hirschman Index, the Lerner Index, the Net Interest Margin, and
econometric methods based on quarterly data for 2018–2024. The results show a gradual decline in market
concentration and banks’ pricing power, while digital-service growth is associated with stronger competition. The
study proposes the Integrated Interbank Competition Assessment Mechanism (IBKBM-2026), which combines
digital transaction share, diversification, management linkages, and optimal growth indicators. Its practical
application at “Business Development Bank” JSC showed improvements in customer activity, digital-service
market share, loan quality, and deposit growth. The findings may support more comprehensive assessment of
competition in the digital banking sector
References
Decree of the President of the Republic of Uzbekistan No. PF-6079 of 5 October 2020, “On Approval of
the Strategy ‘Digital Uzbekistan–2030’ and Measures for Its Effective Implementation”. https://lex.uz/ru/docs/-
Decree of the President of the Republic of Uzbekistan No. PF-5992 of 12 May 2020, “On the Strategy
for Reforming the Banking System of the Republic of Uzbekistan for 2020–2025”. https://lex.uz/docs/-4811025
Decree of the President of the Republic of Uzbekistan No. PF-60 of 28 January 2022, “On the Development
Strategy of the New Uzbekistan for 2022–2026”. https://lex.uz/ru/docs/-5841063
European Parliament and Council of the European Union. Directive (EU) 2015/2366 of 25 November
on Payment Services in the Internal Market (PSD2) // Official Journal of the European Union. — 2015. —
L 337. — P. 35–127.
Central Bank of the Republic of Uzbekistan. Annual Report 2024. — Tashkent: Central Bank of the
Republic of Uzbekistan, 2025.
Central Bank of the Republic of Uzbekistan. Financial Stability Report for 2024. — Tashkent: Central
Bank of the Republic of Uzbekistan, 2025.
Central Bank of the Republic of Uzbekistan. Statistical Bulletin. September 2025. — Tashkent: Central
Bank of the Republic of Uzbekistan, 2025.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 MUHANDISLIK VA IQTISODIYOT
This work is licensed under a Creative Commons Attribution 4.0 International License.