THE PROCESS OF TRANSFORMATION OF THE BANKING SYSTEM AND ITS IMPACT ON THE STABILITY OF BANKS

Abstract

The article examines the process of transformation of the banking system and its impact on the stability of banking institutions. The modern banking sector is undergoing significant changes under the influence of technological innovations, globalization and changes in legislation. Particular attention is paid to the situation in Uzbekistan, where active economic reforms are being carried out aimed at liberalizing the financial sector, attracting foreign investment and modernizing infrastructure. The author analyzes key aspects of the relevance of the topic for Uzbekistan, including the privatization of state-owned banks, the introduction of modern technologies, compliance with international standards, the development of small and medium businesses and increasing financial inclusion of the population. The opportunities arising from these changes are discussed, as well as the risks that may affect the stability of the banking system.