Regarding the bank performance, the bank efficiency of commercial banks is one of the widespread areas of interest for the researchers, regulators, and policymakers. In the same way it is obvious that, the stability and efficiency of the commercial banking sector are essential for the economic development of Uzbekistan, a nation experiencing significant structural reforms. The current study is aimed to evaluate the determinants of efficiency for commercial banks operating in Uzbekistan from 2018 to 2023, a period marked by liberalization and modernization of the financial system. Using a multiple linear regression model, we analysed the impact of key bank-specific factors on profitability, measured by Return on Assets (ROA). The independent variables include the Capital Adequacy Ratio (CAR), Non-Performing Loans (NPL), Cost-to-Income Ratio (CIR), and Loans-to-Deposits Ratio (LDR). Utilizing panel data from the annual reports of 10 systemic Uzbek banks and statistics from the Central Bank of the Republic of Uzbekistan (CBU), the findings indicate that capital adequacy and cost management are statistically significant positive drivers of bank efficiency, while high levels of non-performing loans exert a significant negative influence. Results of the current study provide valued understandings for bank managers, policymakers, and investors seeking to improve the flexibility and performance of Uzbekistan's banking sector in a developing economic situation.
Kuvonchbek Rakhimberdiev (2026) studied this question.