Problems in Regulating the Liquidity of Commercial Banks Based on Monetary Instruments

This article analyzes the main problems of regulating commercial banks' liquidity through monetary policy instruments in Uzbekistan. Although refinancing rates, reserve requirements, and open market operations are considered the most important tools in theory, their practical effectiveness remains limited. The study highlights that the underdeveloped financial market infrastructure, the dominance of short-term deposits in banks' liabilities, and insufficient diversification of funding sources hinder efficient liquidity management. Moreover, weak transmission of monetary policy, administrative allocation of credit resources, and the absence of advanced risk management practices reduce the impact of regulatory measures. The research also emphasizes that the shallow capital market, lack of corporate bonds and derivatives, and restricted interbank operations weaken the monetary transmission mechanism. Macroeconomic instability, high inflation, and external shocks further exacerbate these challenges. The paper concludes that deepening the financial market, fully implementing Basel III liquidity standards, strengthening interbank market mechanisms, and improving corporate governance are crucial for enhancing the efficiency of monetary policy in managing bank liquidity in Uzbekistan.