THE ROLE OF BANKS IN THE MODERN MONETARY SYSTEM

Sharipova Nigina Djurakulovna; Asadova Sabina  Djakhongirovna

Authors

Sharipova Nigina Djurakulovna Samarkand Institute of Economics and Service, Assistant – intern
Asadova Sabina Djakhongirovna Student of MR-220 group of Samarkand Institute of Economics and Service

Keywords:

modern monetary system, banks, commercial banks, central banks, monetary policy, economic growth, technological disruption, digital transformation, risk management, customer-centricity

Abstract

In the modern monetary system, banks play a critical role in facilitating the flow of money, implementing monetary policy, and promoting economic growth. Commercial banks provide financial services to individuals and businesses, while central banks oversee the stability of the monetary system and use various tools to control the money supply. However, banks face significant challenges in the form of technological disruption and regulatory changes, which require them to innovate and adapt to the changing landscape. The future of banking will involve a greater focus on digital transformation, risk management, and customer-centricity.