DYNAMIC DEVELOPMENT OF THE PROCESS OF FINANCING INVESTMENT PROJECTS THROUGH BANK LOANS

Abstract

This article examines the dynamic development of financing investment projects through commercial bank loans. The study analyzes the theoretical foundations of bank lending in investment activities, as well as the role of financial intermediation in economic growth. In addition, international experience in financing investment projects through bank credit is reviewed and compared. Based on the analysis, the sectoral distribution of bank credit investments in Uzbekistan is evaluated, highlighting the priority sectors such as industry, agriculture, construction, and services. The findings indicate that the expansion of bank lending contributes significantly to increasing investment activity, improving production capacity, and supporting economic growth. At the same time, factors such as interest rates, credit accessibility, and risk management play a crucial role in determining the effectiveness of investment financing. The study also identifies existing challenges, including high borrowing costs and strict lending requirements, which may limit investment potential. Finally, practical recommendations are proposed to improve the efficiency of financing mechanisms and enhance the role of commercial banks in supporting investment projects.