INTERNATIONAL EXPERIENCE IN IMPROVING COMMERCIAL BANK CAPITAL EFFICIENCY AND OPPORTUNITIES FOR ITS APPLICATION IN UZBEKISTAN’S BANKING PRACTICE
DOI:
https://doi.org/10.5281/zenodo.23669221Abstract
This article examines risk-based approaches developed in international practice to improve commercial bank capital efficiency and explores opportunities for adapting them to Uzbekistan’s banking sector. The experiences of the United States, the European Union, the United Kingdom, Japan, and South Korea are systematically analyzed in terms of RAROC, EVA, economic capital, stress testing, CET1, and digital risk management instruments. In Uzbekistan’s banking sector, ROA declined from 2.6% to 1.4%, while ROE decreased from 14.2% to 6.6% during 2024, highlighting the importance of strengthening the integrated management of returns on capital, risk, and capital quality. The study develops an original RECS model that integrates the RAROC–EVA–CET1–Stress components into a unified diagnostic framework, proposes an integrated index for the comprehensive assessment of capital efficiency, and introduces a risk-adjusted capital allocation mechanism. The proposed approaches are conceptual and methodological in nature and require subsequent empirical validation using bank-level microdata.Keywords
commercial bank capital, capital efficiency, RAROC, EVA, ROE, ROA, CET1, CAR, Basel III, ICAAP, stress testing, economic capital, risk-adjusted capital, RECS modelReferences
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