Improving the Processes of Financing Investment Projects through Lending in Banks

Today, the role of commercial banks, which are an integral part of the country's economy, in ensuring economic stability is growing. In particular, the importance of banks financing investment projects is very high, and the government continues to implement reforms to further improve project financing. This article analyzes the current state of investment lending practices in commercial banks, their importance for economic development, and their development trends. Additionally, the types of investment projects, financing methods, the role of banks in financing investment projects, directions for improving lending mechanisms, and the existing problems and opportunities for their resolution based on international experience are examined. This study aims to conduct a scientific analysis of the processes of investment lending practices and project finance to improve the financial efficiency and stability of banking activities as well as the whole economy. The article also allows for a more extensive exploration of the literature, providing a more robust and comprehensive overview of the concepts of project finance. According to the research results, analyses are presented via an ARDL-ECM model of Turonbank JSC indicators affecting the share of bank loans and debt financing in fixed capital investments.