IMPROVING THE INVESTMENT STRATEGY OF COMMERCIAL BANKS IN THE SECURITIES MARKET: A STRATEGIC APPROACH

Bobonazarov Jonibek Bobomurotovich

Authors

Bobonazarov Jonibek Bobomurotovich Independent Researcher at Tashkent State University of Economics

Keywords:

Commercial banks, securities market, investment strategy, securities portfolio, strategic asset allocation, portfolio diversification, investment profitability, liquidity management, investment risk, risk-adjusted return, Sharpe ratio, duration, portfolio rebalancing, financial stability.

Abstract

This study examines approaches to improving the investment strategy of commercial banks in the securities market by focusing on the balanced management of profitability, liquidity, risk, diversification, and portfolio stability. The research develops an integrated methodological framework for assessing securities investment effectiveness through investment scale, portfolio profitability, standard deviation, Sharpe ratio, Herfindahl–Hirschman Index, liquidity indicators, duration, and deviations from target asset allocation. The analysis of global sovereign and corporate bond market dynamics for 2015–2024 demonstrates that the expansion of debt securities markets has significantly increased investment opportunities for commercial banks while simultaneously intensifying the importance of interest-rate, credit, liquidity, and concentration risk management. The findings indicate that strategic asset allocation, portfolio diversification, continuous monitoring, stress testing, and timely rebalancing can improve risk-adjusted investment performance and strengthen the resilience of commercial banks’ securities portfolios.