Author: Kuziev, Asadbek Shakir ugli

Annotation: Commercial banks play a central role in economic development by mobilizing savings, allocating capital, facilitating payments, and supporting investment across all sectors of the economy. As financial intermediaries, they channel surplus funds from savers to borrowers, thereby promoting entrepreneurship, industrial expansion, job creation, and technological innovation. In developing economies, commercial banks are particularly important because they provide credit to small and medium-sized enterprises (SMEs), agricultural producers, and households that often lack direct access to capital markets. This article examines the contribution of commercial banks to economic development through a qualitative review of recent academic literature. The study finds that well-functioning banking systems stimulate economic growth by increasing financial inclusion, improving resource allocation, and enhancing monetary policy transmission. At the same time, weak governance, non-performing loans, and inadequate regulation can limit the developmental impact of banks. The findings suggest that commercial banks remain indispensable institutions in both advanced and emerging economies. The article concludes with recommendations aimed at strengthening banking efficiency, promoting responsible lending, and expanding access to financial services to support sustainable economic development.

Keywords: Commercial Banks; Economic Development; Financial Intermediation; Credit Allocation; Financial Inclusion; Banking Sector

Pages in journal: 737 - 741