THE IMPACT OF THE COMPETITIVE ENVIRONMENT IN COMMERCIAL BANKS ON GREEN FINANCE DEVELOPMENT: THE CASE OF UZBEKISTAN

Abstract

The transition to a green economy has become a central priority of Uzbekistan's development agenda, and the banking sector is the principal channel for mobilising finance toward environmentally sustainable investment. While the determinants of green finance have been widely studied, the role of banking competition has received limited attention, especially in emerging, bank-based economies. This article develops a conceptual-institutional framework for the relationship between competition in the commercial banking sector and the development of green finance in Uzbekistan. The institutional analysis shows that Uzbekistan's banking-reform strategy and its green-finance legal framework constitute two mutually reinforcing policy tracks. The article concludes that fostering a competitive banking environment is a promising, under-used lever for accelerating green finance, and offers policy recommendations tailored to Uzbekistan.