EXPANDING BANKING PRODUCTS THROUGH THE INTRODUCTION OF ISLAMIC BANKING INSTRUMENTS: EVIDENCE FROM UZBEKISTAN
Keywords:
Islamic banking, Islamic banking products, banking product diversification, murabaha, ijarah, musharaka, banking system, financial inclusion, microfinance, digital banking, transition economies, UzbekistanAbstract
This article examines the prospects for expanding banking products through the introduction of Islamic banking instruments in Uzbekistan. The study combines theoretical analysis, comparative review of international experience, and assessment of the current condition of Uzbekistan’s banking system. The paper analyzes the economic essence of Islamic banking products, their role in product diversification, and their practical relevance for transition economies. Particular attention is paid to official banking statistics of Uzbekistan, including assets, net loans, deposits, capital, financial stability indicators, digital banking infrastructure, and microfinance sector dynamics. The findings show that Uzbekistan has a sufficient institutional and financial base for the phased introduction of Islamic banking products. The results indicate that Islamic instruments can contribute to the diversification of bank portfolios, the expansion of the resource base, stronger links between finance and the real sector, and improved financial inclusion. The study concludes that the most realistic approach for Uzbekistan is a gradual model based on Islamic windows, microfinance institutions, digital channels, and a strengthening regulatory framework.
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