The impact of the banking sector on the economic growth in developed and developing countries: a case study of the Czech Republic and Uzbekistan

Abdullaziz Samadov

Diplomová práce

Anotace:

The purpose of this study is to explore and compare the impact of the banking industry on economic growth in the Czech Republic and Uzbekistan. The study aims to assess the banking sector's contribution to overall economic growth, investigate the relationship between banking sector development indicators and economic growth indices, identify key factors influencing the banking sector's effectiveness in stimulating economic growth, and provide policy recommendations tailored to each country's unique characteristics and challenges. Ordinary least squares method is used and secondary annual data is analyzed in STATA. Using regression analysis, the study discovers that the banking sector is important in generating economic growth in both nations. Credit availability and efficiency are favorably connected with economic growth in the Czech Republic. Similarly, capital adequacy and financial inclusion statistics in Uzbekistan demonstrate a favorable link with economic development. However, the banking sector's efficacy in encouraging economic growth is determined by country-specific circumstances. The level of education, for example, has a big influence in the Czech Republic but not in Uzbekistan. These discrepancies are due to changes in institutional and regulatory frameworks, market structures, and economic situations. Policy suggestions derived from the study findings are to increase the role of the banking sector in facilitating economic growth in each country. In the Czech Republic, initiatives to improve financial literacy and banking sector efficiency are advised, whereas in Uzbekistan, steps to improve capital adequacy and promote financial inclusion are suggested.

Abstract:

The purpose of this study is to explore and compare the impact of the banking industry on economic growth in the Czech Republic and Uzbekistan. The study aims to assess the banking sector's contribution to overall economic growth, investigate the relationship between banking sector development indicators and economic growth indices, identify key factors influencing the banking sector's effectiveness in stimulating economic growth, and provide policy recommendations tailored to each country's unique characteristics and challenges. Ordinary least squares method is used and secondary annual data is analyzed in STATA. Using regression analysis, the study discovers that the banking sector is important in generating economic growth in both nations. Credit availability and efficiency are favorably connected with economic growth in the Czech Republic. Similarly, capital adequacy and financial inclusion statistics in Uzbekistan demonstrate a favorable link with economic development. However, the banking sector's efficacy in encouraging economic growth is determined by country-specific circumstances. The level of education, for example, has a big influence in the Czech Republic but not in Uzbekistan. These discrepancies are due to changes in institutional and regulatory frameworks, market structures, and economic situations. Policy suggestions derived from the study findings are to increase the role of the banking sector in facilitating economic growth in each country. In the Czech Republic, initiatives to improve financial literacy and banking sector efficiency are advised, whereas in Uzbekistan, steps to improve capital adequacy and promote financial inclusion are suggested.

Klíčová slova

Financial system, Banking sector, Economic growth, Capital adequacy

Keywords

Financial system, Banking sector, Economic growth, Capital adequacy

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 16. 8. 2023

Obhajoba závěrečné práce

• Obhajoba proběhla 8. 9. 2023
• Vedoucí: Viktar Dudzich
• Oponent: Ondřej Šíma

Vysoká škola ekonomická v Praze

Magisterský studijní program:
Finance and Accounting