BANK AKTIVLARI VA PASSIVLARI O’RTASIDAGI MUNOSABATNING BANK DAROMADLIGIGA TA’SIRI

Abstract

This study examines the impact of the relationship between bank assets
and liabilities on bank profitability, highlighting the critical role of effective asset-liability
management in financial performance. Banks generate income primarily through interest
earned on assets such as loans and investments, while liabilities, including deposits and
borrowings, represent the cost of funds. The balance between these two elements
determines net interest income (NII) and net interest margin (NIM), both key indicators of
profitability. Factors such as interest rate spreads, asset quality, maturity mismatches, and
liquidity management significantly influence the bank‘s profitability. A well-managed
asset-liability mix enhances income stability and reduces risks associated with interest rate
fluctuations and liquidity constraints. Conversely, poor management can lead to reduced
margins, increased risk exposure, and potential financial instability. Understanding and
optimizing the interplay between assets and liabilities is essential for banks to maximize
profitability, manage risks, and sustain long-term growth in a competitive and regulated
environment. From this point of view, in this article, I tried to reveal the importance of the
net interest margin in increasing the profitability of the bank, as well as the state of
management of bank assets and liabilities in the banking system of the Republic of
Uzbekistan and its effect on the efficiency of the banking system.