Interest Rate Practices and Management in Banks

The provided document is an analysis of interest rate practices and management in banks. It delves into various themes such as the type of interest rate practices, interbank clearing and settlement systems, and the process for interest rate determination in Tajikistan. The document also discusses governmental policies' influence on commercial bank lending rates and risk management processes. Furthermore, it examines the role of asset liability management units in addressing issues and the provision of satisfactory pension schemes by banks. The analysis is supported by frequency data from a survey that gauges the respondents' perceptions regarding their banks' interest rate practices, online operations, transactional safety, and risk management systems.

An investigation of variation and impact of
interest rate in commercial banks in
Tajikistan after accession to WTO

TABLE OF CONTENTS
CHAPTER 4: FINDINGS...............................................................................................................1
4.1 Introduction......................................................................................................................1
4.2 Results- Quantitative........................................................................................................1
4.2.1 Test/ Retest Reliability..................................................................................................2
4.2.2 Univariate statistics.......................................................................................................3
4.2.3 Bivariate Statistics.......................................................................................................16
4.2.4 Multivariate Statistics..................................................................................................23
4.3 Results- qualitative.........................................................................................................33
4.4 Qualitative research paradigm and approach.................................................................33
4.4.1 Interpretive paradigm..................................................................................................33
4.4.2 Research approach.......................................................................................................34
4.5 Data analysis process:.....................................................................................................34
4.6 Themes:..........................................................................................................................34
4.6.1 Theme 1:......................................................................................................................34
4.6.2 Theme 2:......................................................................................................................36
4.6.3. Theme 3:.....................................................................................................................37
4.6.4. Theme 4:.....................................................................................................................38
4.6.5 Theme 5.......................................................................................................................39
4.7 Results- document analysis............................................................................................41
4.8 Data analysis process......................................................................................................41
4.9 Themes...........................................................................................................................42

4.9.1 Theme 1: How does Impacts of liberalisation in commercial bank lending rates?.....42
4.9.2 Theme 2: Does your bank has any influences due to commercial bank lending rates?43
4.9.3 Theme 3: The cost factors affect determination of lending rates in commercial banks in Tajikistan. 45
4.9.4 Theme 4: The general factors are relevant with cost of loans.....................................46
4.9.5 Theme 5: The inflationary factors which affect lending rate determination...............46
4.10 Reliability and Validity................................................................................................48
4.11 Conclusion....................................................................................................................48
CHAPTER 5: FINDINGS AND DISCUSSION...........................................................................50
5.1 Introduction....................................................................................................................50
5.2 Theme 1: Facilities provided by bank with relations to interest rate in deposits:..........51
5.3 Theme 2: Satisfaction through online services provided by bank..................................54
5.4 Theme 3: Securities with making transactional operations:...........................................58
5.5 Theme 4: Role of banks’ assets and liability management for addressing financial issues: 61
5.6 Theme 5: Satisfaction through interest rate charges on borrowed money:....................68
5.7 Conclusion......................................................................................................................73
CHAPTER 6: CONCLUSION, CONTRIBUTION AND RECOMMENDATIONS...................76
6.1 Introduction....................................................................................................................76
6.2 Summary and main conclusion......................................................................................76
6.3 Contribution to theory or knowledge.............................................................................78
6.4 Contribution to practices................................................................................................80
6.5 Recommendations..........................................................................................................81
6.6 Limitations recognised in research study.......................................................................84

6.7 Further study for future research....................................................................................85
REFERENCES..............................................................................................................................86
APPENDIX....................................................................................................................................89

CHAPTER 4: FINDINGS
4.1 Introduction
In this present chapter there have been examination and test of the data base which have been used by researcher to analyse the
research issues. Moreover, with aspect to make adequate ascertainment and analyse the changes or influences commercial banks have
as per changing interest rates and governmental regulation relevant with banking operations. However, this chapter is consisted with
all the relevant information which are to be used by the professionals in making effective analysis and learning based on the issues
studied.
To analyse the impacts of changes in lending rates which affects commercial bank’s operations and growth. However, in relation
with this, there will be determination of the main factors which are affecting commercial bank operations as well as interest rate
variation in Tajikistan. There has been development of various plans and operational variation which will help in making proper
ascertainment of the operations. In this process, there will be influences of various aspects and elements which have been used to
examine the factors such as Descriptive statistics, ANOVA tests, T-test, Chi square, etc. therefore, such tests and statistical analysis
will bring accurate information relevant with data base. In addition, as per analysing the appropriate outcomes, there will be
preparation of several questions and interview with professionals at commercial banks of Tajikistan which in turn will be useful for
making appropriate participation in this aspect.
4.2 Results- Quantitative
As per analyzing outcomes which implicate quantitative techniques for investigating reasons behind interest rate fluctuations
and changes in operational activities of commercial banks. Therefore, on which implicating statistical tools will bring accurate
outcomes. However, researcher has asked several questions to professionals of commercial banks in Tajikistan with respect to analyze
the concrete issues (as stated in Appendix).
1

4.2.1 Test/ Retest Reliability
In relation with analysing the relationship between the group of variables which are has to be considered by the researcher with
approach to have adequate ascertainment of the data base. Thus, in accordance with this, there have been development 5 industrial
question which were being asked to 150 employees at the commercial banks of Tajikistan. Thus, this test will be helpful in analysing
the reliability of information which have been used for the further tests and analysis. In accordance with designed data set there have
been implication of Cronbach’s Alpha coefficient over the 5 variables. Thus, there have presented information as follows:
Case Processing Summary
N %
Cases
Valid 150 100.0
Excludeda 0 .0
Total 150 100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.305 .312 5
Interpretation: On the basis of above analysed data base where it can be said that there have been test of reliability over the 5
variables. However, Cronbach’s alpha has been ascertained and analysed to have the adequate analysis over the data set. The scale of
measuring the reliability of the database is 0.60 – 0.70. Thus, on eth basis of proposed outcomes which have provided the information
2

such as 0.305 which is 30.5% of the reliability over 5 variables. Moreover, it can be said that, the data is less reliable to be measured
and having the appropriate outcomes through it.
4.2.2 Univariate statistics
This is the concept which will help in analysing the types of data and observations that argue to single attribute or characteristic.
However, analysing the univariate data on which researcher have denoted the independent variable as interest rates and dependent
variable as revenue in banking industries. In addition, there will be use of various data base which will be analysed, collected and
measured for accurate data analysis.
Hypothesis:
Null hypothesis: There is no mean significant difference between interest rates and revenue of commercial banks in Tajikistan
Alternative Hypothesis: There is a mean significant difference between interest rates and revenue of commercial banks in
Tajikistan
Univariate Analysis of Variance
Descriptive Statistics
Dependent Variable: Does your bank facilitate the appropriate interest rate in deposits?
Mean Std.
Deviation
N
2.29 1.277 150
Tests of Between-Subjects Effects
3

Dependent Variable: Does your bank facilitate the appropriate interest rate in deposits?
Source Type III Sum
of Squares
df Mean
Square
F Sig.
Corrected
Model .000a 0 . . .
Intercept 788.907 1 788.907 483.547 .000
Error 243.093 149 1.631
Total 1032.000 150
Corrected Total 243.093 149
a. R Squared = .000 (Adjusted R Squared = .000)
4

Interpretation: On the basis of above listed Univariate analysis over the data base on which it has been asked to the
professionals regarding Interest rates have presented by their banks are appropriate or not. Thus, there have presented their reviews
and majority are in favour with the services and interest rates charged by their banks on the services. Similarly, in analysing the table
5

where Significant value is 0.000 which is lower than P value of 0.05 that defines that, there is a mean significant difference between
interest rates and revenue of commercial banks in Tajikistan.
Descriptive Statistics
Dependent Variable: Are the online operations performed by your bank is quite satisfactory?
Mean Std. Deviation N
2.15 1.252 150
Tests of Between-Subjects Effects
Dependent Variable: Are the online operations performed by your bank is quite satisfactory?
Source Type III Sum of Squares df Mean Square F Sig.
Corrected Model .000a 0 . . .
Intercept 695.527 1 695.527 443.87
7 .000
Error 233.473 149 1.567
Total 929.000 150
Corrected Total 233.473 149
a. R Squared = .000 (Adjusted R Squared = .000)
6

Interpretation: As per analysing, online operations of the banking firm on which professionals have presented their views.
Thus, in accordance with the operation performed by commercial banks in Tajikistan where online operations have been judges on the
factory services being performed by them. However, in respect with analysing the significant value of the data set which have brought
7

the outcomes based on the analysis have presented as 0.000 that is lower than the significant value of 0.05. Thus, it states strong
evidence against the null hypothesis as well as acceptance to the alternative hypothesis such as, there is a mean significant difference
between interest rates and revenue of commercial banks in Tajikistan.
Descriptive Statistics
Dependent Variable: Do you feel safe while making transactional operations?
Mean Std. Deviation N
2.33 1.251 150
Tests of Between-Subjects Effects
Dependent Variable: Do you feel safe while making transactional operations?
Source Type III Sum of Squares df Mean Square F Sig.
Corrected Model .000a 0 . . .
Intercept 816.667 1 816.667 521.500 .000
Error 233.333 149 1.566
Total 1050.000 150
Corrected Total 233.333 149
a. R Squared = .000 (Adjusted R Squared = .000)
8

Interpretation: on the basis of above asked question where professionals have been asked regarding the security offered by
bank in making transactional activities. Thus, the confidentiality of data set has been examined by them where the significant value
9

has been determined as 0.000 which is also lower than the P value of 0.05. Thus, it states acceptance to the alternative hypothesis and
rejection to the null hypothesis as, there is a mean significant difference between interest rates and revenue of commercial banks in
Tajikistan.
Descriptive Statistics
Dependent Variable: Is your banks asset liability management units play main role in addressing the issues?
Mean Std. Deviation N
2.48 1.283 150
Tests of Between-Subjects Effects
Dependent Variable: Is your banks asset liability management units play main role in addressing the issues?
Source Type III Sum of Squares df Mean Square F Sig.
Corrected Model .000a 0 . . .
Intercept 922.560 1 922.560 560.061 .000
Error 245.440 149 1.647
Total 1168.000 150
Corrected Total 245.440 149
a. R Squared = .000 (Adjusted R Squared = .000)
10

Interpretation: On the basis of above listed analysis and table which has have presented the outcomes states that, the asset
liability management system of the organisation has been helpful in analysing the issues and making adequate changes in the
operational practices. Thus, as per analysing the significant value of the data set which is 0.000 lower than 0.05. Thus, it states
acceptance to the alternative hypothesis, there is a mean significant difference between interest rates and revenue of commercial banks
11

in Tajikistan. Moreover, the changes in assets and liability management system to banks will affect the revenue and revenue
generation of commercial banks in Tajikistan.
Descriptive Statistics
Dependent Variable: Do you believe that, vulnerability of a credit union’s financial condition in adverse market movements?
Mean Std. Deviation N
2.15 1.252 150
Tests of Between-Subjects Effects
Dependent Variable: Do you believe that, vulnerability of a credit union’s financial condition in adverse market movements?
Source Type III Sum of Squares df Mean Square F Sig.
Corrected Model .000a 0 . . .
Intercept 695.527 1 695.527 443.877 .000
Error 233.473 149 1.567
Total 929.000 150
Corrected Total 233.473 149
a. R Squared = .000 (Adjusted R Squared = .000)
12

13

Interpretation: By considering the above asked question where professionals have been asked regarding the credit union’s
financial condition will have impacts as per adverse market movements. The significant value states acceptance to alternative
hypothesis which states that, there is a mean significant difference between interest rates and revenue of commercial banks in
Tajikistan. Similarly, the changes incurred in credit unions’ financial condition will may affect the banks in the adverse market
situation.
On the basis of above univariate analysis of data base, professional of various commercial banks in Tajikistan have been asked
to make appropriate determination of operational practices. The relationship among interest rate variations and revenue of the
organization has been examined to have appropriate outcomes. Thus, with respect to the measurement criteria, it can be said that there
is a relationship among these variables. The rise in interest rates will affect term deposit revenue in bank. Additionally, it will be
acceptance to the Alternative which states that there is a mean significant difference between interest rates and revenue of commercial
banks in Tajikistan.
Descriptive
This method helps in bringing summary information about the variables which have been analysed to have accurate
ascertainment of various activities. There will be influences of various statistical elements such as mean, mode, median, standard
deviation and range, etc. Therefore, it represents the summary statistics of database that can be helpful in managing business
operations. Moreover, there will be analysis of various outcomes based on interest rate fluctuation and relevant changes in operations
of commercial banks in Tajikistan have been asked to professionals.
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation Variance
14

Does your bank facilitate the
appropriate interest rate in
deposits?
150 1 5 2.29 1.277 1.631
Are the online operations
performed by your bank is quite
satisfactory?
150 1 5 2.15 1.252 1.567
Do you feel safe while making
transactional operations? 150 1 5 2.33 1.251 1.566
Is your banks asset liability
management units play main role
in addressing the issues?
150 1 5 2.48 1.283 1.647
Do you believe that, vulnerability
of a credit union’s financial
condition in adverse market
movements?
150 1 5 2.15 1.252 1.567
Valid N (listwise) 150
Interpretation: The above listed table which represents outcomes based on reviews from professionals of various commercial
banks in Tajikistan. Thus, in respect with such operational determination, there has been determination of descriptive statistics which
were being asked to the professionals as per making qualitative operational analysis on various issues. It has been asked to the
professionals regarding facilities towards interest rates in deposits awarded by their industry. In this, the mean value has been analyzed
15

as 2.29 which indicates that majority of people believes that interest rates implied on deposits are quite satisfactory. Similarly, there
are majority of opinions collected which reflect that positive banking operations have been performed by banks in relation with
applicating interest rates.
4.2.3 Bivariate Statistics
This is the statistical analysis over testing the variables stating in rows and columns. Thus, this test will help in defining
appropriate relationship among the variables. It is comprised of analysing chi-square test which is being appropriate and adequate in
measuring the effective outcomes.
Does your bank facilitate the appropriate interest rate in deposits? * Are the online operations performed by your bank is
quite satisfactory?
Crosstab
Count
Are the online operations performed by your bank is quite satisfactory? Total
1 2 3 4 5
Does your bank facilitate the
appropriate interest rate in
deposits?
1 23 13 8 8 4 56
2 12 9 8 2 3 34
3 11 10 4 4 1 30
4 9 5 3 1 2 20
5 7 1 2 0 0 10
Total 62 38 25 15 10 150
16

Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 10.962a 16 .812
Likelihood Ratio 12.535 16 .706
Linear-by-Linear Association 1.878 1 .171
N of Valid Cases 150
a. 13 cells (52.0%) have expected count less than 5. The minimum expected count is .67.
Interpretation: On the basis of above analyzed data base which have presented the outcomes for chi square test states
relationship between interest rates and online operations of the banks. However, in analyzing the significant value of the data base
which states p value as 0.812, 0.706 and 0.171 which are comparatively higher than 0.05. Thus, on the basis of which there has been
rejection to alternative hypothesis as well as acceptance to null hypothesis. It states that there is no mean significant relationship
among these variables.
Does your bank facilitate the appropriate interest rate in deposits? * Do you feel safe while making transactional operations?
Crosstab
Count
Do you feel safe while making transactional operations? Total
1 2 3 4 5
1 19 17 11 8 1 56
17

Does your bank facilitate the
appropriate interest rate in
deposits?
2 7 8 10 3 6 34
3 14 8 4 4 0 30
4 6 4 4 4 2 20
5 4 3 1 1 1 10
Total 50 40 30 20 10 150
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 18.882a 16 .275
Likelihood Ratio 19.814 16 .229
Linear-by-Linear Association .014 1 .905
N of Valid Cases 150
a. 13 cells (52.0%) have expected count less than 5. The minimum expected count is .67.
Interpretation: By considering the above listed analysis which have defined the outcomes as there has been outcome determines
the significant relationship among the variables as 0.275, 0.229 and 0.905. Thus, it defines the acceptance to null hypothesis while
stating evidence against alternative hypothesis.
Does your bank facilitate the appropriate interest rate in deposits? * Do you believe that, vulnerability of a credit union’s
financial condition in adverse market movements?
Crosstab
Count
18

Do you believe that, vulnerability of a credit union’s financial condition in
adverse market movements?
Total
1 2 3 4 5
Does your bank facilitate
the appropriate interest
rate in deposits?
1 23 13 8 8 4 56
2 12 9 8 2 3 34
3 11 10 4 4 1 30
4 9 5 3 1 2 20
5 7 1 2 0 0 10
Total 62 38 25 15 10 150
Crosstab
Count
Are the online operations performed by your bank is quite satisfactory? Total
1 2 3 4 5
Is your banks asset liability
management units play main
role in addressing the issues?
1 28 6 8 0 4 46
2 8 12 5 5 4 34
3 6 10 7 7 2 32
4 13 8 4 3 0 28
5 7 2 1 0 0 10
Total 62 38 25 15 10 150
19

Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 33.719a 16 .006
Likelihood Ratio 41.365 16 .000
Linear-by-Linear Association .095 1 .758
N of Valid Cases 150
a. 14 cells (56.0%) have expected count less than 5. The minimum expected count is .67.
Interpretation: The significant value is less than P value such as 0.006 therefore, there will be acceptance to alternative
hypothesis.
Is your banks asset liability management units play main role in addressing the issues? * Do you feel safe while making
transactional operations?
Crosstab
Count
Do you feel safe while making transactional operations? Total
1 2 3 4 5
Is your banks asset liability
management units play main role
in addressing the issues?
1 18 13 6 4 5 46
2 7 10 8 8 1 34
3 12 7 8 4 1 32
4 8 9 8 3 0 28
20

5 5 1 0 1 3 10
Total 50 40 30 20 10 150
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 26.036a 16 .054
Likelihood Ratio 26.312 16 .050
Linear-by-Linear Association .010 1 .919
N of Valid Cases 150
a. 12 cells (48.0%) have expected count less than 5. The minimum expected count is .67.
Interpretation: The significant value is more than P value such as 0.054 therefore, there will be acceptance to null hypothesis.
Is your banks asset liability management units play main role in addressing the issues? * Do you believe that, vulnerability of a
credit union’s financial condition in adverse market movements?
Crosstab
Count
Do you believe that, vulnerability of a credit union’s financial condition in
adverse market movements?
Total
1 2 3 4 5
Is your banks asset
liability management
1 28 6 8 0 4 46
2 8 12 5 5 4 34
3 6 10 7 7 2 32
21

units play main role in
addressing the issues?
4 13 8 4 3 0 28
5 7 2 1 0 0 10
Total 62 38 25 15 10 150
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 33.719a 16 .006
Likelihood Ratio 41.365 16 .000
Linear-by-Linear Association .095 1 .758
N of Valid Cases 150
a. 14 cells (56.0%) have expected count less than 5. The minimum expected count is .67.
Interpretation: The significant value is less than P value such as 0.006 therefore, there will be acceptance to alternative hypothesis.
4.2.4 Multivariate Statistics
Descriptives
N Mean Std. Deviation Std. Error 95% Confidence Interval for
Mean
Minimum Maximum
Lower Bound Upper Bound
Are the online operations
performed by your bank
is quite satisfactory?
1 56 2.23 1.321 .177 1.88 2.59 1 5
2 34 2.26 1.263 .217 1.82 2.71 1 5
3 30 2.13 1.167 .213 1.70 2.57 1 5
4 20 2.10 1.334 .298 1.48 2.72 1 5
5 10 1.50 .850 .269 .89 2.11 1 3
22

Total 150 2.15 1.252 .102 1.95 2.36 1 5
Do you feel safe while
making transactional
operations?
1 56 2.20 1.119 .150 1.90 2.50 1 5
2 34 2.79 1.366 .234 2.32 3.27 1 5
3 30 1.93 1.081 .197 1.53 2.34 1 4
4 20 2.60 1.392 .311 1.95 3.25 1 5
5 10 2.20 1.398 .442 1.20 3.20 1 5
Total 150 2.33 1.251 .102 2.13 2.54 1 5
Is your banks asset
liability management
units play main role in
addressing the issues?
1 56 2.73 1.213 .162 2.41 3.06 1 5
2 34 2.35 1.300 .223 1.90 2.81 1 5
3 30 2.43 1.194 .218 1.99 2.88 1 5
4 20 2.10 1.334 .298 1.48 2.72 1 5
5 10 2.40 1.713 .542 1.17 3.63 1 5
Total 150 2.48 1.283 .105 2.27 2.69 1 5
Do you believe that,
vulnerability of a credit
union’s financial
condition in adverse
market movements?
1 56 2.23 1.321 .177 1.88 2.59 1 5
2 34 2.26 1.263 .217 1.82 2.71 1 5
3 30 2.13 1.167 .213 1.70 2.57 1 5
4 20 2.10 1.334 .298 1.48 2.72 1 5
5 10 1.50 .850 .269 .89 2.11 1 3
Total 150 2.15 1.252 .102 1.95 2.36 1 5
ANOVA
Sum of
Squares
df Mean Square F Sig.
Are the online operations
performed by your bank
is quite satisfactory?
Between Groups 5.107 4 1.277 .811 .520
Within Groups 228.366 145 1.575
Total 233.473 149
23

Do you feel safe while
making transactional
operations?
Between Groups 14.669 4 3.667 2.432 .050
Within Groups 218.665 145 1.508
Total 233.333 149
Is your banks asset
liability management
units play main role in
addressing the issues?
Between Groups 7.126 4 1.782 1.084 .367
Within Groups 238.314 145 1.644
Total 245.440 149
Do you believe that,
vulnerability of a credit
union’s financial
condition in adverse
market movements?
Between Groups 5.107 4 1.277 .811 .520
Within Groups 228.366 145 1.575
Total 233.473 149
Correlations
Hypothesis:
Null hypothesis: There is no mean significant difference between interest rates and revenue of commercial banks in Tajikistan
Alternative Hypothesis: There is a mean significant difference between interest rates and revenue of commercial banks in
Tajikistan
Descriptive Statistics
Mean Std. Deviation N
Does your bank facilitate the appropriate interest rate
in deposits? 2.29 1.277 150
24

Are the online operations performed by your bank is
quite satisfactory? 2.15 1.252 150
Do you feel safe while making transactional
operations? 2.33 1.251 150
Is your banks asset liability management units play
main role in addressing the issues? 2.48 1.283 150
Do you believe that, vulnerability of a credit union’s
financial condition in adverse market movements? 2.15 1.252 150
Correlations
Does your
bank facilitate
the appropriate
interest rate in
deposits?
Are the online
operations
performed by
your bank is
quite
satisfactory?
Do you feel
safe while
making
transactional
operations?
Is your banks
asset liability
management
units play main
role in
addressing the
issues?
Do you believe
that,
vulnerability of
a credit union’s
financial
condition in
adverse market
movements?
Does your bank facilitate
the appropriate interest
rate in deposits?
Pearson Correlation 1 -.112 .010 -.136 -.112
Sig. (2-tailed) .171 .905 .098 .171
N 150 150 150 150 150
Are the online operations
performed by your bank is
quite satisfactory?
Pearson Correlation -.112 1 .113 -.025 1.000**
Sig. (2-tailed) .171 .169 .759 .000
N 150 150 150 150 150
Do you feel safe while
making transactional
operations?
Pearson Correlation .010 .113 1 .008 .113
Sig. (2-tailed) .905 .169 .919 .169
N 150 150 150 150 150
25

Is your banks asset
liability management units
play main role in
addressing the issues?
Pearson Correlation -.136 -.025 .008 1 -.025
Sig. (2-tailed) .098 .759 .919 .759
N 150 150 150 150 150
Do you believe that,
vulnerability of a credit
union’s financial
condition in adverse
market movements?
Pearson Correlation -.112 1.000** .113 -.025 1
Sig. (2-tailed) .171 .000 .169 .759
N 150 150 150 150 150
**. Correlation is significant at the 0.01 level (2-tailed).
Regression
Hypothesis:
Null hypothesis: There is no mean significant difference between interest rates and revenue of commercial banks in Tajikistan
Alternative Hypothesis: There is a mean significant difference between interest rates and revenue of
commercial banks in Tajikistan
Descriptive Statistics
Mean Std. Deviation N
Does your bank facilitate the appropriate interest rate
in deposits? 2.29 1.277 150
Are the online operations performed by your bank is
quite satisfactory? 2.15 1.252 150
Do you feel safe while making transactional
operations? 2.33 1.251 150
26

Is your banks asset liability management units play
main role in addressing the issues? 2.48 1.283 150
Do you believe that, vulnerability of a credit union’s
financial condition in adverse market movements? 2.15 1.252 150
Correlations
Does your bank
facilitate the
appropriate
interest rate in
deposits?
Are the online
operations
performed by
your bank is
quite
satisfactory?
Do you feel
safe while
making
transactional
operations?
Is your banks
asset liability
management
units play main
role in
addressing the
issues?
Do you believe
that,
vulnerability of
a credit union’s
financial
condition in
adverse market
movements?
Pearson Correlation Does your bank facilitate
the appropriate interest
rate in deposits?
1.000 -.112 .010 -.136 -.112
Are the online operations
performed by your bank is
quite satisfactory?
-.112 1.000 .113 -.025 1.000
Do you feel safe while
making transactional
operations?
.010 .113 1.000 .008 .113
Is your banks asset
liability management units
play main role in
addressing the issues?
-.136 -.025 .008 1.000 -.025
27

Do you believe that,
vulnerability of a credit
union’s financial condition
in adverse market
movements?
-.112 1.000 .113 -.025 1.000
Sig. (1-tailed)
Does your bank facilitate
the appropriate interest
rate in deposits?
. .086 .453 .049 .086
Are the online operations
performed by your bank is
quite satisfactory?
.086 . .085 .380 .000
Do you feel safe while
making transactional
operations?
.453 .085 . .460 .085
Is your banks asset
liability management units
play main role in
addressing the issues?
.049 .380 .460 . .380
Do you believe that,
vulnerability of a credit
union’s financial condition
in adverse market
movements?
.086 .000 .085 .380 .
N Does your bank facilitate
the appropriate interest
rate in deposits?
150 150 150 150 150
Are the online operations
performed by your bank is
quite satisfactory?
150 150 150 150 150
28

Do you feel safe while
making transactional
operations?
150 150 150 150 150
Is your banks asset
liability management units
play main role in
addressing the issues?
150 150 150 150 150
Do you believe that,
vulnerability of a credit
union’s financial condition
in adverse market
movements?
150 150 150 150 150
Model Summary
Model R R Square Adjusted R
Square
Std. Error of
the Estimate
Change Statistics
R Square
Change
F Change df1 df2 Sig. F Change
1 .180a .032 .012 1.269 .032 1.628 3 146 .186
a. Predictors: (Constant), Do you believe that, vulnerability of a credit union’s financial condition in adverse market movements?, Is
your banks asset liability management units play main role in addressing the issues?, Do you feel safe while making transactional
operations?
ANOVAa
Model Sum of Squares df Mean Square F Sig.
29

1
Regression 7.867 3 2.622 1.628 .186b
Residual 235.226 146 1.611
Total 243.093 149
a. Dependent Variable: Does your bank facilitate the appropriate interest rate in deposits?
b. Predictors: (Constant), Do you believe that, vulnerability of a credit union’s financial condition in adverse market movements?, Is
your banks asset liability management units play main role in addressing the issues?, Do you feel safe while making transactional
operations?
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. 95.0% Confidence
Interval for B
Correlations Collinearity
Statistics
B Std.
Error
Beta Lower
Bound
Upper
Bound
Zero-
order
Partial Part Tolerance VIF
1 (Constant) 2.838 .339 8.379 .000 2.169 3.508
Do you feel safe
while making
transactional
operations?
.025 .084 .024 .297 .767 -.140 .190 .010 .025 .024 .987 1.013
Is your banks
asset liability
management
units play main
role in
addressing the
issues?
-.138 .081 -.139 -
1.704
.090 -.298 .022 -.136 -.140 -.139 .999 1.001
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Do you believe
that,
vulnerability of
a credit union’s
financial
condition in
adverse market
movements?
-.121 .084 -.119 -
1.446 .150 -.286 .044 -.112 -.119 -.118 .987 1.014
a. Dependent Variable: Does your bank facilitate the appropriate interest rate in deposits?
Excluded Variablesa
Model Beta In t Sig. Partial
Correlation
Collinearity Statistics
Tolerance VIF Minimum
Tolerance
1
Are the online operations
performed by your bank is
quite satisfactory?
.b . . . .000 . .000
a. Dependent Variable: Does your bank facilitate the appropriate interest rate in deposits?
b. Predictors in the Model: (Constant), Do you believe that, vulnerability of a credit union’s financial condition in adverse market
movements?, Is your banks asset liability management units play main role in addressing the issues?, Do you feel safe while making
transactional operations?
Collinearity Diagnosticsa
Model Dimension Eigenvalue Condition Index Variance Proportions
31

(Constant) Do you feel safe
while making
transactional
operations?
Is your banks
asset liability
management
units play main
role in addressing
the issues?
Do you believe
that, vulnerability
of a credit union’s
financial
condition in
adverse market
movements?
1
1 3.489 1.000 .01 .02 .01 .02
2 .238 3.826 .00 .01 .44 .51
3 .204 4.136 .00 .71 .13 .26
4 .068 7.150 .99 .26 .42 .22
a. Dependent Variable: Does your bank facilitate the appropriate interest rate in deposits?
4.3 Results- qualitative
In respect with analysing the questions which have been asked to the professionals of commercial banks in Tajikistan to analyse
their reviews, opinion regarding the flu cations incurred in interest rates. Thus, these questions have been analysed on the basis of
thematic method and interpreted the outcomes in a manner that the majority of opinion were in favour of various options.
4.4 Qualitative research paradigm and approach
4.4.1 Interpretive paradigm
This is the techniques which will be helpful and understanding and studying the individual experiences and opinion towards a
study. As per considering the research issues there have been analysis based on the interest rates changes affects the commercial banks
in Tajikistan after WTO amendments. Thus, as per analysing the impacts of such changes on the operational practices of bank there
will be drafting of various question which will be asked to the professionals in the Tajikistan commercial banks. The analysis will be
based on individual opinion and preferences that can reflect the adequate answer for research issues.
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4.4.2 Research approach
The approaches to a research are mainly based on two types such as inductive and deductive. This technique will help
researchers in analysing the data base and drafting a valid conclusion on analysed issues. In respect with this fact, there have been use
of deductive approach which comprises of asking questions and taking interviews of various individuals. These are the professionals
of commercial banks in Tajikistan which have been asked for the changes in interest rates and its impacts on their bank’s operational
performances. Moreover, there have been consideration of various activities which are needed to be addressed to make qualitative
changes in the operational practices.
4.5 Data analysis process:
In consideration with analysing the data collected from the questionnaires there have been use of themes to interpreted the
answers. Thus, the opinion of professionals regarding the changes incurred in the interest rate over the commercial banks will be
helpful to researchers in drafting adequate conclusion to the report. However, reviews of professionals will be measured through
implication of SPSS frequency analysis on each question. The analysis of all the gathered information by asking individual regarding
their opinion and the performance of their banking industry in several aspects. There has been selection of 150 employees of
commercial banks in Tajikistan which were asked with various questions to analyse the current scenario in banking sector. They have
presented their opinion towards options which have helped in research study to analyse facts and making proper justification of
activities. Along with this, there have been various interviews of various top-level professionals in a business that have represented a
clear understanding regarding interest rate changes as well as governmental plans and policies.
4.6 Themes:
Frequency Table
4.6.1 Theme 1:
Does your bank facilitate the appropriate interest rate in deposits?
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Frequency Percent Valid Percent Cumulative Percent
Valid
1 56 37.3 37.3 37.3
2 34 22.7 22.7 60.0
3 30 20.0 20.0 80.0
4 20 13.3 13.3 93.3
5 10 6.7 6.7 100.0
Total 150 100.0 100.0
Interpretation: It has been asked to the professionals that their bank faciality the appropriate interest rates in deposits from
commercial banks. On the basis for above listed outcomes where 37.3% of professionals believes that there will be appropriate interest
rates in deposits of banks. Therefore, there are appropriate rates which have been awarded to consumers on their savings account and
deposits they make in banks. Moreover, due to such charging rates they will retain appropriate gains on such investments. Along with
this, there are various reviews from professionals on which majority are in favor. It can be said that, commercial banks in Tajikistan
are charging satisfactory interest rates on deposits. In accordance with pension scheme which have been offered by government to its
employees on the basis of their job and level of remuneration retained by them. There have been influences of government policy
development which in turn have negative and positive impacts over schemes and offered by banking industries. Thus, the motive of
government in bringing appropriate revenue gains to the citizens on the basis of their performed duties and jobs in a particular sector.
It basically depends on the level of operations performed by a bank as well as the number of consumers associated with banking
activities. Thus, it can be said that, governmental plans and policies are less affecting the banking sector in Tajikistan which are in turn
have facilitating proper wealth to society. It will be based on changing effective rates of interest among consumers in saving their
implied funds.
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4.6.2 Theme 2:
Are the online operations performed by your bank quite satisfactory?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 62 41.3 41.3 41.3
2 38 25.3 25.3 66.7
3 25 16.7 16.7 83.3
4 15 10.0 10.0 93.3
5 10 6.7 6.7 100.0
Total 150 100.0 100.0
Interpretation: By considering the online transactional activities performed by banks for soothing banking activities. Thus, it
has been asked to 150 professionals at commercial banks in Tajikistan based on satisfaction through making online operations. Hence,
on which majority of them have presented their reviews in favor. It states that, there are 41.35% of professionals are strongly agree
with this statement, 25.3% are agree, 16.75 are neutral while same percentage of individual are disagree this statement. As per
analyzing the variations in the outcome on which it can be said that, currently the banking operations has been enhanced in Tajikistan
which are bringing proper satisfaction. Moreover, in relation which such outcomes it can be said that, online transaction of money and
financial terms are comparatively secure. Thus, the confidentiality of data base is managed well in the commercial banks of Tajikistan.
The separate risks management system is needed to be existed in a banking industry. It helps in securing time as well as perfectly
executing the business operations. It ensures addressing the issues with proper consideration of all causes and impacts. Currently this
technique has been presented by banks in making appropriate operational analysis and efficiency of the issues which in turn will be
useful and adhesive for attaining favorable banking operations. Obstacles are mainly relevant with transferring the funds as well as
35

confidentiality of data base in online operations. On the other side, as per considering the above analyzed outcomes on which it can be
said that, there are major positive reviews obtained from the professionals at commercial banks. Thus, with respect with this,
maximum positive reviews have been considered by the professionals which emphasized on the outcomes as there are satisfactory risk
management system in the organization.
4.6.3. Theme 3:
Do you feel safe while making transactional operations?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 50 33.3 33.3 33.3
2 40 26.7 26.7 60.0
3 30 20.0 20.0 80.0
4 20 13.3 13.3 93.3
5 10 6.7 6.7 100.0
Total 150 100.0 100.0
Interpretation: It has been asked to the professionals regarding the securities of the transactional activities they perform in the
banking operations make them feel safe. Thus. On which various reviews had been gathered by the researchers. on which it can be
said that there are 33.3% professionals are strongly agree with the statements, 26.7% are only agree while 20% are neutral at this
approach. Majority of opinion are in favour of this statement on which it can be said that, they are well confident in terms of having
appropriate analysis over the data base and appropriate determination of practices. In this case it can be said that the banking firms has
to be more focused in terms of improving security at transactional level. The details relevant with accounts, amount as well as
destination needed to be kept confidential as it will not affect the wealth of any individual. Thus, the inter-banking operations has been
analysed and determined by the researcher on which banks lend money to each other with a fixed interest rate to be charges. It helps
36

them in operating activities as well as improving banking functions in the environment. In analysing the outcomes there are approx.
However, it has been analysed that the borrowing interest rates are needed to be reformulated which will bring the positive rise to the
income generation as well as operational performance of the bank. There will be development of various policies and changes in
activities which can make suitable development in the operational practices. It creates opportunities to banking firms in terms of
retaining appropriate amount of revenue as well as make proper changes in operations.
4.6.4. Theme 4:
Is your bank’s asset liability management units play main role in addressing the issues?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 46 30.7 30.7 30.7
2 34 22.7 22.7 53.3
3 32 21.3 21.3 74.7
4 28 18.7 18.7 93.3
5 10 6.7 6.7 100.0
Total 150 100.0 100.0
Interpretation: On the basis of above listed analysis on which it has been asked to the professionals ate commercial banks of
Tajikistan that, their banks is capable of facilitating adequate asset-liability management is addressing the financial issues. Thus, the
question arises after considering the issues in the operations which have been faced by society after impacts of global financial crisis.
Professionals have presented the views on which large number of reviews are in favour which states theta their bank is capable of
facilitating the most adequate services to them. Main role of asset-liability department is mainly associated with facilitating the
institution a strength in terms of meeting debt challenges in the environment. There can be rise in operational gains and business
motive which will help in meeting the targets at the right time. Moreover, the commercial banks in Tajikistan are having the most
37

convenient and appropriate asset liability management. In relation with making additional gains banks usually offer term deposits. It is
based on different rates for several terms of borrowed amount. There will be revenue generation and adequate increment in the
profitability of the banking sector in Tajikistan. The long-term loans will have less rates while short period loans have higher interest
rates. On a psychological manner it can be said that, there are higher number of short term loan borrowers stated in the market. They
usually take loans for specific task such as purchasing home, vehicle and education. These loans are basically for a short period of
time and that helps banks in retaining higher gains. In relation with above listed analysis there are various favourable outcomes have
been addressed by the researchers. Professionals at commercial bank represented that, majority of them are charging rates with respect
to variations in terms and time of industry. Thus, again there are positive reviews from banks that they are adopting such techniques
which will benefit them in getting higher revenue through banking operations.
4.6.5 Theme 5
Do you believe that vulnerability of a credit union’s financial condition is same in adverse market movements?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 62 41.3 41.3 41.3
2 38 25.3 25.3 66.7
3 25 16.7 16.7 83.3
4 15 10.0 10.0 93.3
5 10 6.7 6.7 100.0
Total 150 100.0 100.0
Interpretation: In analysing influences of credit union are in context with helping each other fin the financial operations. they
facilitate loans or borrowing services to each other which in turn provides appropriate operational gains on lower interest rates. Thus,
there have been influences of various conditions which destructs such as adverse market condition like GFC, inflation or recession. In
38

analysing such outcomes, it can be said that, such factors will affect economy and which results changes in interest rates. On the other
side, the above listed analysis represents that there are 41.3% strongly believes that credit union’s financial condition fluctuates as per
the changes incurred in market conditions. Therefore, it can be said that, to retain higher profits and securing capital funds in business.
Moreover, such variations had been done in accordance with making changes in the operational activities and business activities
which has have lead the organisation in retaining higher returns. Thus, these factors influence interest rates risk of such industries in a
way of reducing the level of sales and operational activities performed by them. There are various obstacles and issues which are
affecting operations of firm that helps in managing certain activities for adequate operational analysis. Therefore, these are the
banking operations which are needed to be considered seriously and administratively which will bring certain changes in the
operations of the firm and that will help them in making adequate operational changes.
Therefore, in this respect there are various strategic operations and decisions have been made by the banking professionals
which allows them in meeting the obstacles. Addressing such issues will be beneficial in retaining higher amount of profits through
operations as well as gathering large number of consumers. In formal process there will be analysis based on making proper auditing
of all accounts and analysis over causes which have affected the operational practices of banking firm.
Interview:
4.7 Results- document analysis
In relation with analyzing current issues which were faced by banking professionals in Tajikistan. It has affected the
operational efficiencies of banks. Thus, professionals have been interviewed and asked several questions regarding current industrial
issues which in turn represents appropriate analysis operational requirements. Moreover, there will be thematic analysis on various
factors which can evaluate and ascertain issues which are being faced by the banking professionals. The research approach is
consisting of implicating two techniques such as deductive as well as inductive. In deductive method there will be use of collected
data to be analysed and have the appropriate solution to the outcomes. On the other side, as per considering the inductive approach
there will be use of thematic analysis on which differences and similarity among the outcomes will be addressed to have satisfactory
39

outcome of research. Thus, in the present technique there have been implication of inductive methods on which there have been
various question which were asked to the professionals of commercial banks in Tajikistan were addressed to have appropriate analysis
over their issues.
4.8 Data analysis process
To analyse the collected information which was based on analysing the impact of liberalisation in commercial banks regrading
interest rate fluctuations. Thus, the data have been analysed in the thematic manner which will bring the theoretical analysis over
information’s. Thus, research have interviewed professionals which includes, CEO, managers, supervisors and various parties on the
basis of which the proper research issues will be examined and analysed by them. There has been analysis of the data with considering
the two factors such as qualitative and quantitative. Both the elements have been implicated by researcher in this process which have
articulated the adequate outcomes. Hovered, as per analysing the outcome derived from both the analysis on which it can be said that,
there is impact of changes in the interest rates of commercial banks in Tajikistan and the revenue generation through them. Thus,
changes in the rates affect the operational; practices performed in the banks which also affects the number of consumers in
organisation. The amount of borrowings as well as sales made during a period will be affected due to such banking reforms.
Moreover, the policies and operations have been made by the firm in respect to uplift the operational efficiency and growth.
4.9 Themes
Interview transcript:
4.9.1 Theme 1: How does Impacts of liberalisation in commercial bank lending rates?
Liberalisation is a term where most of the private industries or sectors are banned by the government. Thus, which creates
obstacles in their performance and in business growth. Impact of governmental plans and policies are mainly affecting the banking
sector in country. Changes in taxation, rate of exchange as well as interest rates in the operations mainly affect operational practices of
private banks (Maxfield and et.al., 2018).
As stated by CEO,
40

“I have analysed that the main motive of these banks is based on retaining higher profitability as well as higher consumer
index. This will help them in appropriate growth in sales or revenue. The deregulatory authorities stated in country have made huge
impacts on changing operational variations as well as development of various aspects.”
Moreover, as per considering the banking preferences, there will be higher concerns relevant with generating profits as well as
reducing costs implied in each banking activity. It has analysed that in October 2008, there was a total debt of US$700 million on the
cotton sector which was extremely funded in consideration of pledges and guarantees by National Bank of Tajikistan. Thus, these
were the initiatives which have been taken by bank in context with promoting agricultural sector in country (Mushtaq and Siddiqui,
2017). Thus, on which the creditors were ought to receive marketable securities as compensation. In this case, debts have been owned
by investors in financing cotton sector in the economy. Thus, in 2009, government of Tajikistan was continuing to facilitate funds in
agricultural sector with the help of commercial banks without restricting or limiting the borrowings to cotton growing. Moreover,
there have been various steps which were taken by NBT with reference to liberalise the export of cotton.
There are impacts of raising competition in the nation which will affect operational policies for banks. As per considering the
scenario during the global financial crisis, enhancing the sales in banks for meeting market competition, bankers have facilitated loans
on lower interest rates. Thus, due to some impacts, there was no money left in the banks as well as in circulation (Ramlall, 2017).
Moreover, people at that time have made investment in real state which results in reducing the monetary circulation in countries.
Therefore, it brings rise to the inflation states, reduction in GDP as well as GFC impacted in economy. Tajikistan has been engaged in
various financial obstacles as there is higher competition as well as rise in inflation results in enhancing the interest rates.
On the other side, competition in banking sector has also affected poor mechanism in management and operations of firm. The
impacts of such rising competition in operational activities of banking industry have negativity affected operations of firm. In addition,
rise in competition in banking sector will bring reduction in interest but on the other side, it will affect poor monetary circulation in
environment (Kwan, 2018).
41

“I believe that, Countries like Tajikistan will have various issues or obstacles which will result in inappropriate internal
management which will affect the economic activities in country, by manager”
4.9.2 Theme 2: Does your bank has any influences due to commercial bank lending rates?
In analysing the answers of various professionals which were asked that, they have represented their views and information
regarding lending rates fluctuations in banks. Thus, in this case, there have been influences of various factors which distract in
banking operations that affect the overall operational activities. It mainly affects the sales growth, efficiency as well as preference of
industry. The rise in interest rates has impacts on reducing public borrowings as well as increases the debts of industry (Sharofiddin
and et.al., 2018). Along with this, there are various plans and policies which were being stated by the government such as monetary
policies, taxation, economic changes, etc.
As stated by supervisor that,
“I think the operational aspect of commercial banks is mainly relevant with providing better banking services to investors.
Thus, changing rates will affect a loan sum granted by banks as well as terms for borrowing the amount.”
Bank borrows funds from other financial institutions that will result in uplifting its operational aspects. Thus, the variations in
inter-banking transactions, that has brought them gains or losses on the same aspect (Maxfield and et.al., 2018). There have been
various kinds of financing activities which are needed to be done with the motive of making appropriate changes and operations that
will lead to manage operational analysis. There are generally simple and compound interest rates which have been charged against the
amount of loan granted to a person.
Thus, on the basis of such interest rates, they have higher earnings and revenue for development of various operational
practices. In particular, due to accelerated inflation rate that have indicated an expected decrease or appreciation in exchange rate
(Mushtaq and Siddiqui, 2017). In other case, situation for enterprises that produce goods distinct for export deteriorates have reduced
competitiveness in the world market.
42

“CEO stated that, exporting enterprises are forced to adjust the new condition which increases efficiency as well as sales
growth of products inside a country.”
In terms of analysing the payment system in Tajikistan, on which main emphasis of government which influences realization
and financing operation performed in economy. In relation with ascertaining the inter-bank clearing or credit settlements, there are
several processes. This includes principle of reliability, acceleration of settlement transmission and expediency (Sharofiddin and et.al.,
2018). Therefore, such analysis helps the banking organisation in terms of having adequate operational analysis and management of
various approaches.
However, the advantages of such transnational process are that banks charge fewer rates in clearing any account or making
profitable rise in the operational aspects. Along with this, there will be rise in operational efficiencies of banks which in turn will be
helpful for managing the transactional obstacles (Martin and et.al., 2018).
“Manager stated that, there has been consideration of “contracts of services on interbank settlements”, the banks stated in
country transit funds from one branch to another.”
4.9.3 Theme 3: The cost factors affect determination of lending rates in commercial banks in Tajikistan.
As per analysing factors which affects lending rates in banks are generally relevant with expenses incurred during a period.
However, there have been various determinants which create obstacles in analysing the data base and abounded banking operations as
well as affects lending rates. It mainly includes the merger and acquisition of small banking units, intensity of capital exertion by
creditors in operational administration, policies for enhancing the risk reduction arrangements (Ramlall, 2017). Along with this, there
have been influences of various cost factors and economic elements which affect the lending rates. It includes the monetary policies,
relationship with other nations, GDP and inflation rates.
Thus, such factors have negative as well as positive impacts on country which bounds economists for analysing the current
scenario and planning for improving internal environment. Along with this, growth rate in Tajikistan is not so appropriate which states
43

that small and medium sized industries are not capable of retaining higher revenue as compared with the multinational industries
(Kwan, 2018). It is due to dependency of this nation on other nations. Domestic strength is not appropriate in retaining appropriate
development in the economy of Tajikistan. Instability in the current account of country will be managed through balancing payments
and trades. Thus,
As stated by manager,
“I believe that, raising volume of exports in comparison with imports will be profitable in balancing trade practices and current
account of economy. These are the accounting factors which are affecting the economy and which will reversely affect the interest
rates of the nation.”
There has been consistency of various factors which will have impact on identifying the interest rates in Tajikistan. It
comprises of various classification policies which are based on several activities such as bank's classification as well as of Tajikistan's
classification theory (Ramlall, 2017). Along with this, it can be said that it is based on current interest rate structure which will help in
making proper analysis of activities.
“Super stated that, there has been administration over controlling the interest rates as well as appropriate wealth management
with respect to manage operational demands in capital market. Thus, in analysing the obstacles, there can be influences for adjusting
the terms and risks associated with business operations”
4.9.4 Theme 4: The general factors are relevant with cost of loans.
It has been analysed here that there are various general factors which will affect the cost of loan in an industry. It creates
obstacles in banking operations of commercial banks if a bank borrows funds which are not capable of meeting costs in the future.
Thus, these are debts which create issues in the survival of such financial institution. The viability as well as capacity of firm in terms
of financial structure will define effective cost-efficient factors to improve business operations (Maxfield and et.al., 2018). In respect
44

with granting the loans among corporation as well as individuals, charging a specific interest rate will bring profitable returns to a
commercial bank.
“I think borrowing a certain amount of loan will require the payments of such borrowed amount in a required period, by CEO.”
However, controlling costs for lending loan amount is incorporated with several factors such as executing interest rates,
preparedness for emergency, economic stability and fiscal performance of nation as well as ascertaining debts. Thus, these are factors
which are needed to be considered by government and professionals at banks for making fruitful policies and operational development
in work culture (Mushtaq and Siddiqui, 2017). On the other side, it will have prolonged to improve borrowing tendency as well as
lending capacity of bank.
4.9.5 Theme 5: The inflationary factors which affect lending rate determination.
In accordance with various factors that influences interest rate fluctuations in an economy, are required to be investigated and
ascertained. Therefore, impacts of inflation rate fluctuation in a nation will have positive as well as negative impacts on the lending
proportion. Inflation in general terms is known as rise in prices of commodities which is relevant with issues such as dependency as
well as poor currency rate of nation (Sharofiddin and et.al., 2018). Thus, in this approach, there have been various issues such as
dependency of Tajikistan over other nations in terms of obtaining the natural resources, etc. These creates reduction in the currency
value as compared with other nation which in turn accelerates inflation rate.
Thus, it impacts in rising interest or lending rates in commercial banks. It comprises of various factors such as fractional-
reserve banking, quantity theory of money, interest rates, loan, inflation and savings, quantity theory of money and federal open
market committee (Martin and et.al., 2018). Thus,
“I believe that, ascertainment of the national growth with considering such factors will help in uplifting economic conditions as
well as bringing favourable gains to nation, by supervisor”
45

Government in Tajikistan has huge implications of economic policies which create obstacles in the banking industry. Main
motive of economist in a country is basically determination of appropriate sources to raise the currency value as well as reduction in
inflation rate. Government mainly creates policies relevant with interest rates, taxation, report and import duties which were analysed
for balancing the current operations of country. Therefore, frequent changes in operations of banking firm have affected industrial
policies as well. Therefore, such changes will create hurdles in making efficient efforts in the banking operations. Moreover, as per
analysing the impacts of GFC attacks in a nation, there has been increase in inflation rates, unemployment and several unfavourable
economic rates which have affected the downfall of economy.
“Employees of commercial bank stated that, there have been various reforms and changes in the operational analysis and
determination of accurate interest rates.”
4.10 Reliability and Validity
In respect with the gathered information, there are various details that have been generated through questionnaires and
interviews. Thus, in respect with such assessment, complete information is gathered from reliable and authentic sources. Similarly, the
individuals which are selected to bring their views are mainly professionals of commercial banks in Tajikistan. Therefore, scholars
have analysed appropriately the gathered information as well as presented better analysis over the outcomes. For a research study, it is
necessary that all the information and details relevant with the national or economic issues must be authentic. Therefore, reliability of
such information will help researcher in drafting appropriate analysis over data base. Thus, in the present research there have been use
of various data and information which have been gathered through analysing the reviews from professionals and market have been
addressed. However, the reliability and validity of such information have helped scholar in tracking main issues and making reliable
suggestion for appropriate improvement in the global practices. Along with this, the information is valid and have concrete analysis to
the solution.
46

4.11 Conclusion
On the basis of above chapter and various outcomes which have been analysed here are relevant with determining the impacts of
interest rates fluctuations in the commercial bank of Tajikistan. Thus, there have been impacts of various techniques and operational
practices which have helped in analysing the several operations. Moreover, there has been generation of various information which
have represented mixed reviews on outcomes such as interest rates in commercial banks will reflect positively in rising revenue.
Therefore, if bank charges higher interest rates among buyers on their savings, it will enhance revenue retention in industry. On the
other side, as per considering changes incurred in revenue, it can be said that interest rates will affect reduction in revenue of banking
business. Borrower of loan will not be interested towards making any investment in operations which affect negatively in terms of
reducing the revenue of industry. On the basis of above analysed data through questionnaire and interview of various professionals on
which it can be said that, commercial banks in Tajikistan have influences in the operational practices which is basically through
changing interest rates. Therefore, the analysis has determined the various factors and opinion of professionals regarding their banking
practices and operational approaches made by their bank in the same aspect.
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CHAPTER 5: FINDINGS AND DISCUSSION
5.1 Introduction
This chapter is consisting of all the relevant information regarding the outcomes determines in the previous chapter. There will
be discussion over the reviews and opinion of professionals regarding their banking operations. To analyse the impacts of interest rate
fluctuation in the commercial banks of Tajikistan which determines of above listed outcomes and reviews of professionals in such
banking sector have reflected the positive outcomes. Thus, it can be said that, there are various reviews and opinions of professionals
regarding banking activities and organisational culture. In this aspect, it can be said that there are various reasons on which a
commercial bank makes changes in the interest rates on lending. It will be due to retaining higher earnings and operational gains on
the collected amount of fund (Mandilaras, 2015). Similarly, there can be rise in the operational gains and motives of business with
respect to retain appropriate revenue for operational practices.
Along with this, competition stated in environment which is also an indicative term for enhancing the interest rates. It
motivates the professionals performing in commercial banks to have higher operational gains and large sales volume. Moreover, there
have been influences of governmental schemes and policies for citizens in terms of enhancing lending rate. Thus, on which they have
impacted changes in the rates on the subsidies financial companies which are mainly financial institutions and operational units
(Taguchi and et.al., 2015). These motives of governmental authorities in respect with balancing the inflation rates as well as exchange
rate in the economy. Thus, a strong currency value in respect to USD than there will be less inflation in the nation. The dependency of
a nation on another will be reduced as it will enhance per capita income as well as purchasing power of individuals.
If the bank offers them the higher interest rates than there will be chances of having appropriate profits in return. Considering
such approach will invite more and more potential investors that adversely helps bank in generating appropriate capital gains. In
commercial banks of Tajikistan to improve commercial activities as well as monetary circulation this approach will help personnel in
favourable collection of capital funds. Impacts of banking status and condition which have impacts among the consumers as they
usually go for the banks which have higher revenue and turnover in a period. Thus, which reflects that it will be profitable to make
48

investment in such bank. On the other side, the status and image of banks will have risen expectations among the buyers. This, chapter
will consist of effective information regarding the determination of various database through implicating statistical tools. There has
been analysis over such data base through implicating ANOVA analysis, T test, Chi-square, descriptive statistics etc. these outcomes
have been addressed to have appropriate discussion based on the issues which have been arises due to rise in the interest rate offered
by commercial banks in Tajikistan. There can be various tactics and strategic development in terms of improving the currency risk
management of firm. They also seek for the return they will receive through such investment. Thus, the banks have offer them the
adequate interest rate which will attract them in investment terms. There have been rise in the operational motives and increment in
the level of gains in business. There have been impacts of operational practices which are performed by banks in having inappropriate
administration of operational practices. The motive of this organization is for developing a fair-trade practices and norms among the
nation which will be adequate and efficiently in making proper operational development. However, as per considering the accession of
Tajikistan on which the government had been integrated in multilateral trading system. Therefore, the main support of WTO had been
based on making adequate increment in the economic condition of the nation. This chapter will highlight analysis over the operational
tactics implied in banks which are convenient to the banking professionals in terms of making effective operational administration and
controlling business activities.
5.2 Theme 1: Facilities provided by bank with relations to interest rate in deposits:
As per evaluating the outcome which have been found in the above listed analysis which in turn reflecting the positive reviews
in making the adequate development in operational practices. Thus, in respect with this, there have been increment in the operations.
In financial liberalization where various financial institutions have made modification in their lending rates in a particular location of
economy (Mushtaq and Siddiqui, 2017). Thus, it impacts on retaining the higher revenue through borrowed funds. Moreover, it helps
the banks in reducing their repayment amount. It enhances monetary circulation in most positive way which will be helpful and
adequate in uplifting operational gains and motives in economy. Usually, financial liberalisation is conceded out within framework of
global approach of macroeconomic balance, financial liberalisation and structural modifications. As a result of overall liberalization,
49

the economic situation of many enterprises deteriorates and total of resources used to repay bank loans is reduced (Bayat and et.al.,
2015). Along with this, there have been analysis made on the theories represented by Keynes which have pointed out as an entity in
investment markets improves, there is an increment in the level of danger in prevalence of speculative transaction over business
operations. Moreover, there will be development of the market for derivative securities (Tabit and Moussir, 2016). The derivatives
market allowed financial institutions to redistribute various types of risks, creating new instruments and thereby, attracting customers.
As per the reviews obtained by the various professionals have been surveyed by the researcher on which it can be said that there are
various techniques which are being unimplicated by the small financial banks which helps them in mitigating the challenges incurred
due to changing interest rates.
There have been higher interest rates which charged by the newly entered banks. Thus, such approaches will help integrating
the large numbers of consumers or investors in the banks. They have enhanced greed to retain the higher profits on making investment
in the banks. Thus, if the bank offers them the higher interest rates than there will be chances of having appropriate profits in return.
Considering such approach will invite more and more potential investors that adversely helps bank in generating appropriate capital
gains (Kwan, 2018). In commercial banks of Tajikistan to improve commercial activities as well as monetary circulation this approach
will help personnel in favourable collection of capital funds. In addition, after the completion of appropriate time and business reaches
to the successive position than professionals will make reduction in the interest rates charged by them.
In accordance with the safety concerns there will be consideration of proper banking laws and regulation which are being
governed in the Tajikistan (Maxfield and et.al.,2018). The management of operational practices will be helpful in uplifting the security
in the banks. Thus, investor will rely on the banking operations and have trust in making investments in the banks. There will be
consideration on the methods of making transactional activities such as online and offline. Thus, mostly, in the online transactional
process there will be chances of having manipulation and cyber-crime relevant with improper funding and operational administration
(Sharofiddin and et.al., 2018). While, the banks make necessary increment in the operational practices which will help them in
governing the transactional approaches and make reliable changes in work practices. The interest rates charged among inter-bank
50

transaction on the other hand impacts the consumers. Thus, the higher inter-bank charges will also affect in the parallel manner in
increasing the interest rates offered among buyers. There will be negative impacts on people for having ineffective increment in the
financial conditions and operations.
The impact of banking status and condition which have impacts among the consumers as they usually go for the banks which
have higher revenue and turnover in a period (Taguchi and et.al., 2015). Thus, which reflects that it will be profitable to make
investment in such bank. On the other side, the status and image of banks will have risen expectations among the buyers. Therefore,
they have to be effective in terms of offering the relevant services among professionals which in turn will be useful for generating
appropriate capital gains. Thus, adequate interest rates will also be accentuating to firm in having extra and fruitful returns which will
enhance strength of organisation in mitigating the financial risks.
Moreover, the financial inclusion will ascertain the small banking units to make trade practices in the market. It is because
their terms and consideration for operating the banking practices are appropriate and liberal for the borrowers. By luring the
consumers as per offering, them the higher interest on their invested amount of funds in the banks will help the banks in generating
appropriate equity (Bobokhonov and et.al., 2017). Adversely, it will affect the number of borrowers in the firm. Thus, the higher rates
will also affect their capacity for making returns to the bank. Moreover. In that manner there will reduction in the number of
consumers to entity. On the other side, the challenges and competition among banking businesses have been a challenging aspect
which will affect the lending operations of the firm. Therefore, the rise in competition level also increase the interest rates
(Khordehfrosh Dilmaghani and Tehranchian, 2015). It encourages banking professionals for retaining the higher earnings and revenue
from the external professionals which in turn attentive towards generating higher profits.
There have been various senior citizens which were being facilitated with the pension scheme presented by government on the
basis of their services and efforts made in jobs. Thus, the level of job done by them as well as the level of efforts made by them have
been converted into the revenue payable by the government throughout their life (Sharofiddin and et.al., 2018). Along with them there
will be beneficiary from their family which are a dependent person such as their wives or children as per asking the professionals that
51

how satisfy their consumers with the pension schemes offered by their bank (Maxfield and et.al., 2018). Therefore, in Tajikistan
commercial banks have several operational activities which are benefitting the buyers with securing their funds as mentioned in their
bank accounts. Thus, it has been believed by the professionals which are operating the banking activities in the commercial banks of
Tajikistan believes that they are offering appropriate pension schemes to their consumers and they are satisfied with the banking
policies and regulation in this approach (Taguchi and et.al., 2015). Thus, the government as well as commercial banks are capable of
meeting the requirement of senior citizens in terms of benefiting them with pension services.
There have been various other operations which are being awarded among the senior such as terms deposits, fixed deposits,
borrowing scheme as well as special interest rates on their invested fund in organization (Kwan, 2018. There will be benefits and
adequate rise in the gains which can make beneficiary improvements in the business. Along with this, there have been various social
insurance claims have been made by people with respect to their applied bonds, funds, and the finance ministry central treasury bonds.
However, this will be the main aim of banks in terms of bringing the satisfactory services to the senior as they have appropriate
amount of retirement monetary and are willing to make investments in the banks to secure their uncertain future ( Sharofiddin and
et.al., 2018). Thus, the beneficiary rates and schemes are required to be awarded to them which will bring them higher satisfaction and
operational gains that incurred in managing the operational activities.
Moreover, in analyzing the outcomes based on such statistical tools which have been used by researcher in identifying the
relationship between interest rate and sales of commercial banks where Cronbach’s alpha has been analyzed as 0.305 and 0.312. Thus,
it states that, the data which have been considered to examine the facts have less reliability. It can be ascertained between 0.60 to 0.70.
Thus, less than 0.60 have been treated as less reliable information.
5.3 Theme 2: Satisfaction through online services provided by bank
For providing active structural reforms and implementing major projects in the framework of industrial policy with financial
means. In the absence of other financial institutions, main tasks of banks were, first, in allocation of public funds in form of centralised
loans, and secondly, in protecting domestic producers, including new emerging industries, from external competitors, by maintaining a
52

high level of preferential Crediting (Khordehfrosh Dilmaghani and Tehranchian, 2015). The solution of these problems assumed
administrative management of credit resources and a high share of quasi-fiscal operations of the government in banking sector.
Moreover, enhancing credit terms and term deposits in banks will be helpful in bringing rise to the debt management in operational
activities.
In respect with bringing reforms in economic activities, the financial market and the capital market as synonyms needed to
imply a market for financial institutions that provide movement of savings from those households and firms whose revenue exceeds
expenses to those firms and households that want to spend more than current income allows (Schnabl, 2017). The result of functioning
of the financial market at turn of 20-21 centuries was the deformation of its economic role, cause of which lies in inherent volatility of
the capital market, which makes it possible to profit through speculation, and not through use of financial resources in production
process (Sharofiddin and et.al., 2018). The Tajikistan financial market belongs to emerging environment. It began to form around
twenty years ago. Operational aspect in every bank basically depends on the level of consumers generated and facilitated with the
borrowing services. There can be increment and development operational tasks which will help in managing activities as well as
analysing cultural needs of business.
Despite this, it was also affected by crisis shocks, which led to intensification of government's actions to revise the financial
market regulation system. Also, it is necessary to solve such problems as creating conditions for attracting domestic and foreign
investments, increasing this activity and developing small and medium-sized businesses with solving the problem of credit availability
for real sector. Liberalisation is one of steps to develop financial market in Tajikistan. Moreover, there will be positive rise in GDP
rate of Tajikistan as if government makes supportive plans and schemes in the banking sector, it will enhance growth in economy
(Bobokhonov and et.al., 2017). These banks have been approached towards facilitating the appropriate loans and advances to small
scale industries which are helping them in having appropriate loan advantage. This is inversely benefiting nation for making
qualitative increment in the operational efficiency as well as generating employment opportunities in society (Ahmed, 2018). There
can be growth in the domestic production of nation which in turn have positively impacted rise in business activities.
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By considering the operational gains in business which has have affected the positive rise in banking efficiencies. There have
been use of various techniques and methods which have presented the adequate analysis over data base (Thanh and et.al., 2017). In
this process, there will be influences of various aspects and elements which have been used to examine the factors such as Descriptive
statistics, ANOVA tests, T-test, Chi square, etc. Therefore, such tests and statistical analysis will bring accurate information relevant
with data base. Using such techniques have resulted in reliable and valid information regarding the changes in lending rates by
commercial banks.
Moreover, such analysis is consisting with identifying the variation in the data base, opinion and functional practices made in
the banking sector. The reviews and preferences of professionals have been acknowledged which have presented the adequate
outcome based on operational needs and wants of such personnel. However, efforts and influences made by the world trade
organization which in turn brings the monetary and financial help to various countries (Ahmed, 2018). The motive of this organization
is for developing a fair-trade practices and norms among the nation which will be adequate and efficiently in making proper
operational development. However, as per considering the accession of Tajikistan on which the government had been integrated in
multilateral trading system. Therefore, the main support of WTO had been based on making adequate increment in the economic
condition of the nation (Mushtaq and Siddiqui, 2017). Therefore, economic development will be relevant with the appropriate trade
practices among multiple nations which will financial assist the operations and make appropriate application for improving domestic
revenue (Thanh and et.al., 2017). Thus, a financial support will help the country in having proper GDP rates which can help in
improving the small-scale industries. The development of small business will bring rise to the currency value and respectively control
the interest rates in the market. The impacts of financial development will reflect in positive changes in all the segmentation.
Government will have enough funds to make appropriate development and analysis over the issues.
Operating the banking services on the online segmentation is a most convenient and new approach which helps the
organization in retaining the adequate gains as well as management of operational analysis. There can be manipulation or fraud in the
banking practices as per concerning the online transactional activities (Bobokhonov and et.al., 2017). There are various areas which
54

are the main concern in the organization respect with banking transactional practices such as crime crimes and security relevant with
transacting funds from one location to another (Martin and et.al., 2018). There might be several issues and obstacles which can have
negative impacts due to uncertain and inadequate online operational management. Professionals have presented their reviews on the
basis of their satisfaction regarding the online operation performed by the banks (Mandilaras, 2015). Thus, as per reviewing the
outcomes on which it can be determined that there are majority of professionals are in favor of online services facilitated by their
banks. Thus, in Tajikistan the rise in digitalization have also affected positively in terms of improving the banking operations in
economy.
Beside this, there are various benefits of implicating the digital influences in the banking and transactional practices. It helps in
administrating the transaction at any time or from any location (Tabit and Moussir, 2016). There might be increment and growth in
business efficiency which in turn have impacts on raising the business efficiency. It will positively impact on bringing the appropriate
auditing practices which can be useful identifying the loopholes of risks associated with the operations. Risks are relevant with the
banking operations, economical consideration as well as changes in the governmental plans and polices towards taxation, current
exchange rates as well as interest rates (Ahmed, 2018). Thus, this directly affect the banking operations performed by banks in terms
of short and long-term policies. However, in protecting the bank from the direct influences of such market risks on which they create
separate risk management system which will protect the banking operation by external impacts. Thus, the creation of shield will help
investors in securing their money which were being invested by them in banks (Ramlall, 2017). If the bank become insolvent than
before declaring insolvency they will first make payments to their consumers on their invested money. Thus, with approach to such
operational activities there will be separate risks which will protect and prevent the banking operations with such external influences.
There are various risk management techniques which have been practiced in the banks such as basis risk, yield risk and several
material risks.
The management of such issues and obstacles will help the firm in retaining the adequate amount of gains and profitability.
Thus, it will also help in managing the effective consumer relationship as well as improving the efficiency of banks in terms of
55

meeting appropriate growth. To have effective financial control and management of various practices which assist the professionals
luring the consumers with the profitable interest rates. However, the prices only fall as per rise in yields which are particularly in
bonds that reflects with a long maturity and low coupon rates. Thus, long term bonds of futures will have lower interest rates which is
due to the longer duration a firm has to make payment to an individual. Thus, this time duration advantages will help investors in
retaining the profits for longer period. The charges will help in improving revenue moreover, impacts on analyzing the operational
issues. Mitigating the risks will result in higher revenue generation as well as better operational administration which will leads the
organization to retain higher success.
There will be several risks and issues which creates obstacles in the banking system which will be helpful in governing and
operating the banking tasks. Thus, there are transactional risks are on the prime concerns. The security of funds which are being
invested by consumers in the banks for securing their money for the longer period on which they can relay and trust. Therefore, the
responsibilities of the banker and banking professionals are in terms of making appropriate increment in the revenue and growth of the
firm’s operational efficiency. Therefore, it is deliberately required that every banking institution must have separate risk management
system which will be helpful to them in managing the obstacles as well as analyzing the risks associated in the banking business. the
disclosure of financial health of the business on which such requirements will be helpful to manage and operate the banking activities.
5.4 Theme 3: Securities with making transactional operations:
In concerning the techniques which have been implicated by the banking organization on which they usually use value at risk
which bring them uniformity in measuring the risks as well as bringing the accurate analysis over the profit generated by the industry.
The risk management unit have been enacting the techniques and methods for establishing the supervise risk management operations
which will include responsibilities of managerial units regarding transactional aspects and the security of the invested funds by the
consumers in banking units. Tajikistan usually have lower interest rates charges among the loan and borrowings taken by the
professionals. Thus, in consideration with such aspect people are less interested in investing the funds in the banks. They are highly
attracted towards investing the funds in the real estate and shares which will bring them long term benefits. Therefore, to encourage
56

the people in making investment in the banking firm it is required to redeveloped the policies as well as ensuring higher security to
their invested funds.
There are various banking operations in a firm on which various kinds of risks are being associated with each department and
piece of work. It can be said that. All the financial risks which are being associated with the banking business such as credit risk,
liquidity risks, operational risks, market risks, computer system risk, legal risk and reputational risk in the business. However, in terms
of credit risks there are main issues which are being seen in the banking industries such as not becoming able to recover the loans,
restoration of business conditions as well as circumstances incurred with the counter party relevantly with the credit risks. Banks have
earning through facilitating the loan and lending money among consumers and corporation which will bring them earning through
interest’s. Therefore, in sometimes banks fails to recover the granted money to such individual due to various reasons such as the
person is dead of insolvent. Similarly, the organization have demolished of become insolvent on which there is no chances of
recovering loan amount. To overcome with such risks banks takes guarantee of acquire the fixed asset of respective concern which
will bring them support and techniques to overcome with the credit risks associated with such operations.
As per considering the market risks on which there are obstacles and issues incurred in the market functions. The fluctuation of
the interest rates, currency values, stock prices etc. which affects the economic stability of the nation as well as also bounds banks to
make changes in the operational policies. Therefore, it can be said that, market risk inherent in the banks dealing operations, there will
be involvement of interest risk which affects the banking account, savings and loans by individual. Similarly, there will be risk of
having fluctuation in the stock which were being held by the banks in consideration of the long trim investment. Thus, these are the
market risks which affect a banking business. To overcome with such risks there have been various obstacles and issues which are
required to be considered by the banking professionals which are in motive for enhancing the techniques and methods to overcome
with such obstacles.
In relation with liquidity risks there are various obstacles which were being affecting the business operations such as managing
the liquidity of the firm. Failure of banking professionals in managing the short-term solvency and the ability to balance the current
57

asset and current liabilities which are being affecting the operational practices as well as management of operational practices in a
required period of time. Along with this, banks offered short term loans to the buyers which are somehow effective in retaining the
higher returns and quickly recovering the lent amount within a specific time period.
In context with the operating risks which are being involved in the banking business which are usually errors incurred while
making transactional entries. It can eb through banking professionals or by the errors incurred in the computer devices. The technical
errors will be resolved and overcome by the banking professionals which can have impacts on managing the issues. Along with this,
there will be obstacles relevant with the unethical conduct and relevant circumstances which affects the banking operations. Therefore,
assessing the operational risks in the banking transaction will help the professionals in having appropriate ascertainment of
transactional process. Similarly, there are risks relevant with the computer devices which have been used by the banking professionals
in making inter-banking transactions as well as facilitating the internet banking among consumers, it also consists of errors in the
system, unethical conduct such as fraud, manipulation of funds etc. the technical errors are the prime concerns which affects and
utilize time to resolve the issues. To overcome with such issues there will be requirement of having regular auditing of the system
software. A regular upgradation as well as installation of new software will bring rise to level of performance and quick response to
mitigate such technical risks.
Legal obstacles and influences of the governmental plans and policies which are also affecting the banking operation in terms
of inviting the uncertainties for resolving problems. Influences of laws, rules and reforms in the governmental policies which are
affecting the banking operations. In Tajikistan the influences of government and legal authorities are relevant with resolving the
financial issues and obstacles which will be helpful in governing the business tasks. To bring stability in the banking operational
practices and preventing the firm from such risks there will be requirement of becoming up-to-date with the current affairs and issues
incurred in the banks.
However, as per considering banking business relevant risks on which it can be said that the professionals have to be attentive
and effective towards implicating the methods for resolving the risks. Installation of effective technical software as well as regular
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auditing of the accounts will benefit the banking professionals in resolving the issues and mitigating the risks. Thus, testing the
variables have presented various outcomes through which significant value have been determined as 0.000 which is less than p value
of 0.05. Thus, in this case there will be acceptance to the alternative hypothesis and there are strong evidences against the null
hypothesis. So, it can be stated that, there is a mean significant difference between the interest rate and the sales revenue of
commercial banks in Tajikistan. Additionally, it concludes that, the changes incurred interest rate of Tajikistan will eventually affect
the sales revenue of banking industries.
5.5 Theme 4: Role of banks’ assets and liability management for addressing financial issues:
In accordance with analyzing the concept there have been security system which are being presented in the bank software that
will protect the information from spams and external hackers. There will be use of various anti-virus software and malwares which
will protect the official site just to create a shield over the network and the users of the sites. Along with this, there have been
implication of various self-generated pin no. that will be password of each individual with respect to make appropriate operational
analysis (Khordehfrosh Dilmaghani and Tehranchian, 2015). Therefore. As per the epitomes there are mostly positive reviews which
were retained by the researcher that, professionals believe that their banks are offering appropriate security in trims of monetary
transactions (Bayat and et.al., 2015). However, as per considering the literature where it has been discussed that, buyers or investors in
any financial institution are seeking for proper security on their invested money as well as desired of having higher returns against it.
The influences of appropriate cyber security will help in uplifting the business activities as well as management of several operations.
Improving the transactional operations with proper influences of the cyber securities. It consists that there must be regular
auditing of accounts which can be important and adequate in terms of enhancing the operational activities as well as managing the
business operations (Martin and et.al., 2018). It is essential that the banks must keep proper cyber administration with regular audit
and management through technical professionals. The data are needed to be kept confidential which is belongs to the funds of buyers.
To retain the large number of investors for long term operational support there will be requirement of bringing them appropriate
satisfaction through securities.
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The development of various economic policies and plans will be based on considering the monetary system in the nation.
Thus, the impacts of such factors will be reflected in the determining the appropriate techniques to control credit policies (Mushtaq
and Siddiqui, 2017). However, with the operational influences of principle guidelines of credit monetary and foreign exchange
policies of Tajikistan and which was formed in 2000 have fcailiated various guidelines to present the appropriate monetary as well as
credit policies (Taguchi and et.al., 2015). Thus, such monetary have been include various plans and approaches in terms of managing
the various factors. However, other than this, origination have presented the interest of creditors and investors for having appropriate
financial stability and balance of banking system functions. Implication of various software which will help the banking firm in
keeping the confidentiality in the data base which will be adequate in managing the operational practices as well as administrating the
circulation of funds (Bayat and et.al., 2015). Along with this there will be less influences and interaction of external parties in the
banking operations. Thus, the confidentiality of records will help in managing the appropriate consumer relationship. There can be
growth and profitability in the firm in terms of having soothing banking operations which will assists the workforce in making
qualitative efforts.
It is required that there must be implications of secured log-in and accessing system which will bring security cover to the
investors. Every consumer has to be facilitated with the unique and different PIN no. which must be based on their pinion and choices
for the passcode. Therefore, the confidentiality of such information will bring appropriate execution and control over the manipulation
and reliability of data base which will be useful for the banking business. moreover., it will be suggested to the professionals that they
must keep the records of all online transaction and banking transaction performed each day. To bring the revolutionary changes in the
banking operations it is required that the professionals needed to be attentive towards transactional details and confidentiality
associated with it. The email addresses, mobile number, account number and pin code etc. are to be kept secure and only in the
reaches of the consumer so they can easily modify and change as per their convenience. Implication of anti-virus software is
mandatory as it prevents the network system and computers from phishing, malware as well as from several other security concerns.
Along with this, preventing the organization system from spyware which will help in protecting the data and ensures complete
60

security. There must be proper updates and notification to consumers based on changes made in banking system and in the system
software on which they access through computer of mobile phones.
However, bringing online banking operations will be more conveyancing technique as it will help the professionals in
analyzing the financial position of business in a required time period. Cloud system will help them in working through any place and
accessing all the required information in a limited time utilization. The conveyancing of such system is for professionals as well as for
consumers too. Making online payments and any banking operation become easy and quick which also prevents theft, manipulation
and fraud in financial activities. People will have all results such as their account statement, remaining balance and interest in their
accounts each time they operate banking activities. On the other side, the inter-bank transactional activities on which each computer
devices are connected with each other have represented the appropriate analysis over business transactional activities. The payments
made by professionals as well as executional consideration have been making reliable and profitable control over activities made in
the firm. It requires the appropriate execution by technical experts enrolled in the business they have to be assigned duties to analyze
and detect any unethical thing incurred between banking operational practices. The detection will help in governing practices as well
as brining the satisfactory operational services among the consumers.
If banking organization considers the appropriate transactional aspects than the chances of having theft and manipulation will
be reduces. The banking or financial risks in the economy have been controlled as the banks have appropriate operational analysis and
care regarding the activities. There must be records of past transactions which will help them in governing the targets and meeting the
operational gains in a limited time period. Every bank must present the site security, policies and disclosure among the consumers to
communicate the better terms and conditions in the transactional process. E-banking have been based on various laws, regulation and
terms and condition which makes the process smooth and convenient among the individual. Therefore, representing the adequate
information among buyers this is necessary to keep the proper records of each transactions.it is required that all the consumers which
are enrolled in online business transactions must have appropriate knowledge and information regarding the terms which will help in
61

reducing the risks through any financial obstacles. One can easily claim in court and take advantages such as refund, discounts and
allowances.
The rules and guidelines have been facilitated by the financial services authorities which govern all the transaction process as
well as interest rates which are being charged by bank on savings account, current accounts well as on loans borrowed by individual. It
has been asked to the professionals at commercial banks regarding the interest rates charged by their banks on the borrowed fund.
However, in relation with such aspects there are maximum responses are in favor of their interest rates have been charged by their
banks on the loans (Schnabl, 2017). Thus, it can be helpful to them in terms of meeting business objectives. Therefore, banks have to
be more convenient among their consumers as per charging the interest rates on their borrowed money. This is the main source for
them in generating the appropriate amount of revenue (Bayat and et.al., 2015). Tajikistan is one of the leading Muslim nation so it will
be challenging to them that people belongs to religion do not take interest as a good thing. Moreover, there will be challenges which
are being faced among Islamic banks and conventional banking system.
Along with this, the challenges will be meet as if the commercial banks will offer appropriate interest charges over the
borrowed funds. Revenue generation and collection for appropriate funds will result in suitable stability in the capital structure as well
as manages the liquidity of funds. However, the prices only fall as per rise in yields which are particularly in bonds that reflects with a
long maturity and low coupon rates. Thus, long term bonds of futures will have lower interest rates which is due to the longer duration
a firm has to make payment to an individual. Thus, this time duration advantages will help investors in retaining the profits for longer
period. Preventing the cause of financial crisis or any uncertain risks, banks needs to have satisfactory policies which will govern and
make appropriate administrative analysis (Khordehfrosh Dilmaghani and Tehranchian, 2015). The number of funds borrowed by
consumers in a particular period will be helpful to the professionals in gaining the adequate gains and managing the operational
analysis (Mandilaras, 2015). Gains from operational practices will be helpful in managing the financial stability in the operational
functions.
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The influences of the revenue earning policies and techniques imposed by the government in any economy which was
consisting the adequate changes in the operational administration. Thus, there are several aspects which are governing the
transactional analysis and management of practices. However, bringing the adequate securities among the consumers relevant with
their invested money in the banks which is required that there must be appropriate execution over the funds invested by them. Banks
usually makes investment in the various other aspects such as investing in other banks or in the security markets which ensures higher
revenue generation by them. Thus, with the same aspects there can be changes of retaining higher revenue along with highlighting the
responsibilities of bankers in terms of making payments of the revenue acquired through such operations. Thus, satisfaction of an
individual or a corporation in with the banking services and interest will be based on the security convert awarded by them. Thus,
investors seek for the higher return, lower risks as well as appropriate security on the invested funds. If the bank denoted them self as
insolvent, that there will be requirement of making payment to the investors on the basis of their investment in the banks.
To meet the intern banking competition there are higher chances of having the tough competition in a manner that banks
charges higher interest rates on their services. The higher interest rates will bring them higher revenue as well as rises their market
value in the security markets. On the other side, as per considering the consequences incurred while the period of global financial
crisis on which banker used to charge lower interest among the consumer which have approaches them in having large number of
consumer, higher monetary circulation as well as higher trade practices. Therefore, after such effects there is no money left in the
banks for the operating activities and which have invited the global financial crisis, higher inflation as well as recession in the
economies. There various nation which were directly and indirectly affected through such impacts on which Tajikistan has indirect
impacts.
The satisfaction to the consumers through interest rates imposed by the government will be helpful and adequate as if they
meet the operational targets at the right time. Borrower are seeking for the banking institution which offer lower interest rates charged
on the lending money. The investment security is the prime concern which will help in retaining the potential consumers for the long-
term basis. Thus, as per reviews from bankers it can be said that there are majority of the individual are satisfied with the interest rates
63

charged by their banks on the borrowed funds by the investors. Thus, stock market has been based on assessing the risks and
managing the operational analysis.
To revenue have been gathered by the firm on the basis of having higher revenue and retaining the adequate amount of
profitability through such operational aspects. The number of lenders and the amount of funds have been acquired by them is helpful
to the banking business in terms of having higher revenue. It must be challenging to the competitors as well as satisfactory to the
buyers which will bring them return for the longer terms. Therefore, all operational aspects and requirement of the firm has to be met
by the professionals with considering the challenges and issues have been faced by the professionals with respect to several tasks such
as appropriate taxation system, liquidity of the firm as well as market value in the capital market. In accordance with the operational
challenges and activities which were has to be performed by the banking professionals have been helping the industry in making
profitable changes which insist growth in the banking activities.
Along with this, as per analyzing the outcomes stated in the Bivariate analysis of the variables which have presented the
information based on significant value of each dataset. Thus, it defines significant value as 0.812, 0.275, 0.006, 0.054 and 0.006 on all
the 5 items that have been used and tested. There are majority of results are defining sig. value as more than p value of 0.05 therefore,
there will be acceptance to the null hypothesis as well as rejection to alternative. It brings that, there is no mean significant relationship
between interest rate and sales revenue of commercial banks of Tajikistan.
In accordance with this them there have been analysis over the bank’s assets liability management system in meeting the
financial obstacles of banks in appropriate time (Bobokhonov and et.al., 2017). Thus, managing the current ratio are the prime
requirement of every financial industry which insists that there must be appropriate funds management and administration of business
requirements. Therefore, such operations have been denoted as the risk management as well as strategic planning for the business.
Tajikistan have been underdeveloped economy as well as have higher influences of rising inflation rates (Taguchi and et.al., 2015).
The causes are affecting operational phenomenon which are not presenting appropriate information regarding the liquidity, interest
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rate, capital market risk and appropriate funds management. Thus, as per the outcome based on this them where professionals have
presented the positive review that their banks’ assets and liability management system is capable in meeting the financial problems.
In addressing the facts there have been implication of various techniques and operational ascertainment which are affecting the
operational goals and managing business issues have been considered to meet all the relevant risks (Khordehfrosh Dilmaghani and
Tehranchian, 2015). The main risks which are associated with the banking businesses are relevant with the fluctuation in the current
rates, interest rates and changes in financial funding (Bayat and et.al., 2015). As per considering the liquidity risk which are associated
in the banking operations are relevant with the errors presented in the cash flow statement. Therefore, these are generally the
obligation on which the banks are incapable of meeting them. Thus, this will challenge the bank’s financial conditions that also affects
the benchmark prices in the market (Maxfield and et.al., 2018). Moreover, liquidity is relevant with the short solvency of the business.
Thus, as if the business is being capable of meeting the operational requirement at the right time than there will be rise in the revenue
and gains to the firm. The short-term debts where easily being met by the banks.
In terms of capital market risks which are relevant with the changes in the level of equity generated by firm through investors
on the basis of futures, bonds and securities (Mushtaq and Siddiqui, 2017). There can be various tactics and strategic development in
terms of improving the currency risk management of firm. They also seek for the return they will receive through such investment.
Thus, the banks have offer them the adequate interest rate which will attract them in investment terms. There have been rise in the
operational motives and increment in the level of gains in business. There have been impacts of operational practices which are
performed by banks in having inappropriate administration of operational practices.
Term deposits will be adequate in terms of generating adequate amount of revenue. Term deposits or short-term loans will be
beneficial in terms of having higher revenue and easy recovery of funds. Consumer borrowed funds on the short term will have higher
interest rates charged over it which help the banks in gaining appropriate revenue and better collection. It will help the business in
adequate financial governance with executing the inflation rates, tax advantages, security or volatility, flexibility or liquidity, growth
and income, desire to leave an estate and ease of management (Maxfield and et.al., 2018). However, as per analyzing the objectives of
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banks which are mainly focused and based on improving the funds and number of consumers. The current ratio of institution has to be
adequate and appropriate which capable them in meeting the short-term solvency (Mushtaq and Siddiqui, 2017).
Additionally, it can be said that, there are higher revenue generation by banking institutions as if they facilitate the term
deposits. The short-term period loans will be helpful as there will be lower taxation rates charged ion the gains. Along with this, there
can be rise in the revenue or funds for the business which will result in fruitful gains ( Sharofiddin and et.al., 2018). In the economic
point of view there will be higher security as the banks will have quick returns on their granted funds. Thus, such factor will have
higher revenue generations.
5.6 Theme 5: Satisfaction through interest rate charges on borrowed money:
There have been various short-term investment options through which a business can acquire the adequate gains and
ascertainment of effective operational analysis. It includes, bank fixed deposits which benefits the banking organization in terms of
having appropriate liquidity, tenures, quick returns as well as taxation benefits. There has been dilemma of investors in context with
whether to make investment in the long terms as well as short term operations. There have been increment in the gains and revenue of
banks which can be effective in uplifting the level of revenue retained by the business. In short term investment there will be mutual
benefits to banks as well as consumers. They will have quick responses to the applied transactional process and acquiring funds.
Banking business have analyzed the rates of making payments to their shareholders on the basis of their invested money in the bank.
They make enough money for paying their employees as well as maintaining the buildings to run operations in the firm. They can
gather appropriate amount of money of have revenue through several sources such as by charging interest on the funds they lend to
individual or a corporation. This is the main purpose of banking and main source of acquiring revenue. On the basis of such lending
and facilitating the borrowing these businesses become able to have higher gains and profitability. They can also have gains through
changing fees on the services they offered to consumers such as transactional charges among inter banking operations.
Along with this, they can also make money through the traditional financial instruments on which they make operations in the
financial market. To market the ownership of banks in the proportionate manner on which various investors will make investment to
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have appropriate acquisition of funds. Therefore, banks also make investment in various other corporation and banks in terms of
receiving the favorable returns on their invested money. Through such sources the banks will have appropriate market share and
satisfactory amount of capital in the business. therefore, encouraging the consumers to make short term borrowing will be helpful to
the banking industries in terms of having higher monetary circulation as well as earning through interest received by them. The
biggest advantage of lending the short-term loan is that, there will be lower risks of having bad debts and frauds in financial aspects.
The interest rate of return in short-term borrowings are comparatively higher than the long-term borrowings made by banks. Thus,
there are higher chances of having high revenue and gains through the operational practices. The short-term borrowings are benefited
with the low risk and higher return. Moreover, in relationship with such benefits it can be said that there are comparatively higher
revenue and gains as obtained by banks. There has been preparation of various informal and formal process by the banks which are
required for managing the risks. Therefore, the changes in interest rates will affect the economy and society.
Along aside, it can be said that there has been requirement of making adequate operational analysis and determination over the
fruitful practices which has to be governed and management by the professionals (Taguchi and et.al., 2015). Implicating the financial
consumer protection scheme which in turn will be useful for retaining the trust and loyalty of buyers of banks. It includes several areas
which are to be considered by the professionals at the banks such as institutional framework, regulation and legal influences. These
can have positive increment and rise in the operational level of business that will help in good governance and management of
operations. There will be influences of various consumer disclosure which brings information regarding the transactional practices
performed by banks in a certain period (Tabit and Moussir, 2016). A clear information regarding the operational practices will help in
making reliable auditing of all accounts. Thus, the chances of having manipulation in funds will be reduced which accentuate the
better consumer relationship and financial governance in the firm (Kwan, 2018). Thus, buyers will have effective trust as pert having
secured funds for operation. Similarly, the effective management practices will help in rewarding buyers for their investment and
interest rate allowances for their funds (Bobokhonov and et.al., 2017). On the other side, for mitigating the banking and interest rates
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risks there will be requirement of improving the organization performances. Thus, appointment of qualified and talented workforce for
practices will be adequate and helpful to the firm in retaining the targeted goals at the right time.
There have been various issues which were being arises due to management and protecting the consumers from financial risks
which are relevant with the financial structure of Tajikistan commercial banks (Schnabl, 2017). Therefore, the will be requirement of
clear responsibilities and capacity of the firm in dealing with the financial obstacles. There have been negative impacts of improper
execution of banking operation which might bring hurdles and damages the consumer relationship. If an investor feels safe and secure
regarding their invested funds than they will have interest in making investment in industry. It requires appropriate cover and
protection from the external impacts on their investments (Khordehfrosh and et.al.,2015). The national bank of Tajikistan has been
making efforts in designing new policies and framework for banking personnel and consumers fort having secured investment in each
activity. There will be analysis over legality of power and resources which are to be used in performing the banking tasks (Sharofiddin
and et.al., 2018). Proper monetary administration and protection will he adequate in guiding the business for having adequate
cooperation and coordination which will improve the mechanism and financial regulatory to have improved capacity in dealing with
effective financial sector.
Along aside, the firm must have effective dispute resolution system which will take the consumer feedbacks and make
appropriate changes in the operational practices (Taguchi and et.al., 2015). It will be helpful in ascertaining the risks and loopholes the
banking firm has in its operations. Thus, managerial professionals would be able to draft a new strategy and techniques to over come
with the such issues (Bobokhonov and et.al., 2017). Moreover, such approach will enhance the capabilities of firm in mitigating the
challenges and improving the financial stability for the long term operational practices. There have been various operational as well as
financial risks which are being involved in the operational practices of the banking organization. Therefore, to mitigate sushi risks
there will be requirement of developing a separate risk management system. The risks can be relevant with the credit risk, market risk,
operational risk etc. thus, to meet such obstacles there will be necessary increment and development of plans which will be helpful in
governing the tasks and operations in the firm. Training and development of banking professional with reference to meet the
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challenges, requires to be adequate as there can be necessary increment in the operational practices and governance of the operations
(Redivision of the banking market going on in Tajikistan, 2017). Along aside, developing policies and techniques to perform the
banking operation ion which influences of various obstacles will be managed. Professionals will have effective solution to each issue
and that will help in governing in financial aspects of firm.
Moreover, as per emphasizing the multivariate test to analyze and detect the variables which have presented the information
based on such variables have presented that, there will be no relationship between the interest rate and sales revenue of Commercial
Banks in Tajikistan. It states through analyzing the significant value of the data base such as 0.520, 0.050,0.367 and 0.520. The
majority of outcomes demonstrates to accept null hypothesis. Trough this observation it can be said that there is no influences of
changes incurred in interest rates over the sales of commercial banks.
The role of credit union in the economy is for promoting the financial inclusion in the rural or backward areas. The main
objective is for developing the SME’s or entrepreneurs in small areas with granting them lower rate loans (Tabit and Moussir, 2016).
Thus, such grants help the locality in terms of having adequate growth and development which will result in beneficiary gains. It
brings the rise in the flexibility and liquidity among the economy which will help in governing the individual risks, knowledge and
confidence management. There will be consideration of long-term borrowers. On the other side, it has been anlsyed here that the credit
union grants will reflect negatively in terms of reducing market value of banks (Taguchi, Sahoo and Nataraj, 2015). Thus, banks will
facilitate the lower interest rates with a favor of providing appropriated funds to the small-scale industries.
There will be ineffective and inadequate utilization of funds with lower returns by banks which affects a reduction in the
revenue or capital stability in firm. Therefore, such impacts on reducing the brand value in the capital market. Due to such impacts
there will be adverse market conditions which affects the economy to have down fall (Thanh and et.al., 2017). In the commercial
banks of Tajikistan, the main motive is for granting the adequate loans and borrowings to the small-scale industries which will bring
them higher returns and adequate gains that is a social responsibility (Khordehfrosh, and et.al., 2015). Along with this, it will affect
the economy as banks will not have sufficient amount of funds in the reserves and which will invite financial crisis. There have been
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higher corporate taxes which are to be payable by the banks in terms of revenue gathered by banks for in appropriate business
administration.
It is required that the banking organization must be concentrated towards enhancing the profitability and revenue gains through
operational efficiencies. There can be various terms of operations which are being indicating the professionals to make rise in the
production and revenue aspects. Therefore, lending the funds and having revenue through interest rates will be adequate techniques in
attaining the business goals and making appropriate efforts for revenue generation and adequate gain through operational efficiency of
the firm. The main motive of banking industry for attracting the large number of borrowers of investors on which they can have
revenue through charging interest on such funds. Therefore, there are various terms and policies which have been designed by the
banking of other financial institution with a motive to retain the higher revenue and well as meeting the competition stated in the
market. The differences in the market value as well as rate of return have been affecting the chances of having adverse market
conditions for such firms. through fluctuations in the NPV of future cash flows. The higher interest rate risk will affect negatively or
threaten the earnings, liquidity and solvency of banking firm (Bobokhonov and et.al., 2017). Along with this, there have been impacts
of various issues which are in the interest level risks such as non-offsetting effects on the assets, liabilities and derivatives of the
organization. However, the material risks will have negative impacts on rising the issues and affecting the financial institution for
insecure and inadequate operational analysis (Maxfield, Wang and de Sousa, 2018). It is on the other side, have been denoted as the
best sources for generating profits and having appropriate gains that will help the organization in retaining the adequate gains. It is
required that the business must have appropriate risk management system which in turn will have positive impacts on managing the
issues and risks relevant with the financial operations (Sharofiddin and et.al., 2018).
There are several basic risks which are needed to be managed such as yield curve risks which are belongs to changing rate
relationship between different maturities of same index that have adverse impacts on income and economic value of the firm
(Mandilaras, 2015). However, this curve will reflect the adequate analysis and outcomes based in the capabilities of firm in mitigating
the risks at the right time. Therefore, the main motive of industry is based on managing the marketability, share value in the capital
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markets which will bring them large numbers of investors which are keen to make appropriate investments in the business. there
charges levied by commercial banks as interest rates which will be ade4quarte and helpful in terms of uplifting the operational gains
and managing the operational analysis. In addition, there are GAAP accounting risks which is the management system which will also
help in tracking the obstacles and removing it through implicating appropriate techniques. In banking industries there are various
creditors and debtors and relevant accounts which are have to be kept in the books. Thus, the transactional entries of each accounts in
a periodical basis are required to be made (Kwan, 2018). This will be a great source of removing all obstacles and issues which in turn
will be helpful for overcoming with the manipulation and material risks.
However, regular auditing of the banks accounts will be the best source for preventing the business from any material and
financial risks (Martin and et.al., 2018). As per ascertaining the outcomes based on the question which have been asked to the banking
professionals at commercial banks on which they represented the adequate opinion. There were maximum responses are in favor that
their banks have effective risk management system which helps them in managing the financial stability as the changes in interest
rates do not bother it (Schnabl, 2017). Thus, the changes in governmental plans and policies as well as risks associated in the business
will have negative as well as positive influences due to changes made in operational analysis and management of various industrial
activities.
5.7 Conclusion
On the basis of above chapter, it can be said that outcomes and opinion of various individual as well asanalaysis made through
secondary research have been combined to get an accurate ascertainment of the research issues. The regression and correlations
analysis over all these 5 variables have defined that there is no mean significant relationship among sales revenue in commercial banks
and interest rates in Tajikistan. However, it ascertains the R value as 0.180 that is 18.0% of the data is related to each other. Similarly,
the significance value is reflecting as 0.186 which is higher than 0.05. It states, these variables are not relevant with each other as there
is no relationship is being set out among these variables.
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On the other side, as per considering the impacts of derivatives which ascertains that they can impacts on limiting the
downside earning exposures, increases yield, preserve higher earning potential and reduces income/ capital volatility. This will be a
great source for a banking institution in generating the adequate amount of capital funds which will have potential and quick rise in the
funds (Tabit and Moussir, 2016). Moreover, it will affect the large portion of both sides of balance sheet such as assets and liabilities
through, limiting interest rates risk. Thus, the accentuated capital structure will have impacts in managing the debts and solvency of
business which will help consumers in having appropriate rates charges over their borrowings. Reciprocate, it will affect the rise in the
consumers retention and commercial activities of banks (Thanh and et.al., 2017). Every banking and financial institution have backup
plan which helps them in mitigating the challenges and risks. There are several risks which creates obstacles in the organizational
performance in the business (Ahmed, 2018). It can be relevant with the interest rates changes impacts over capital
banking operations that creates hurdles in the growth and operational practices (Bayat and et.al., 2015). However, major
number of responses are in favor of this statement that banking institutions in Tajikistan have effective process for mitigating risks. In
analyzing the reviews of the professionals form different commercial banks in Tajikistan on which they have various process and
approaches which have helped them in overcoming all the risks associated in the business. however, there are several techniques
which have been impacted by the banking professionals such as buying interest rates futures (Maxfield, Wang and de Sousa, 2018).
Thus, purchasing shares on the interest rates which includes government bonds and interest rates futures. Therefore, it enables the
banks in lock in hedging their portfolios as well as lock in a certain interest rate. Besides this, the purchase of shares will bring best
returns which will result in adequate gains and raises the operational efficiency.
To mitigate the risks there will be further option which are being considered by the banking professionals or investors such as
selling long term bonds. Therefore, there are various individual investors which hedge against rising the interest rates by selling bonds
in the market (Khordehfrosh and et.al., 2015). However, the prices only fall as per rise in yields which are particularly in bonds that
reflects with a long maturity and low coupon rates. Thus, long term bonds of futures will have lower interest rates which is due to the
longer duration a firm has to make payment to an individual. Thus, this time duration advantages will help investors in retaining the
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profits for longer period (Mushtaq and Siddiqui, 2017). Thus, selling such bonds will bring profits to the firm in a required time
period. On the other side, buying a floating rate and high yield bonds which hedge against increasing their portfolio form long to short
terms (Sharofiddin and et.al., 2018). It includes floating rate bonds and high yield bonds. Thus, these are the strategies and techniques
which are usually governed and considered by banking professionals in terms of overcoming challenges and mitigating the risks
associated with banking operations.
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CHAPTER 6: CONCLUSION, CONTRIBUTION AND RECOMMENDATIONS
6.1 Introduction
In this part of research study, this chapter is consisting with information regarding the research issues, techniques to be
implicated in identifying the causes as well as discussion based on the finding. Th outcomes derived through this research will be
discussed in a summarized way. professionals and the society will be awarded with the appropriate analysis made through this
research over issues. It is consisting the several parts such as conclusion of entire study, the contribution of researcher and learning
through this study. There will be recommendations to the banking professionals of commercial banks in Tajikistan with respect to
make revolutionary changes in the banking practices. To improve the potential and banking efficiency in the economy there will be
several suggestions awarded to them. This chapter will have effective information regarding the analysis and findings of researchers
with respect to meet the concrete evidence.
There has been ascertainment of effective information regarding the banking system and the government plans for developing
banking system in Tajikistan. The problems and issues which have been faced by the professionals in the industry which are required
to be resolved and managed and by professionals in an effective manner. This chapter will also consist the information regarding the
favourable suggestion which are to be presented among the professionals to resolve the interest rate relevant obstacles as well as
techniques to overcome with them. There will be recommendation and analysis over the contribution of researcher and professionals
in the completion of this study.
6.2 Summary and main conclusion
This study is consisting of relevant information which will be based on ascertaining the issues and obstacles which have been
faced by the professionals in terms of meeting the appropriate solution to the research issues. To analyse the impacts of variations in
the interest rate changes in the commercial banks of Tajikistan after impacts of accession of WTO on which study will highlight all the
relevant facts and obstacles. Thus, there had been examination over the obstacles and issues which were being involved into practices
and have affected the operations in banking system. Therefore, the aim of report is for reaching to all aspects and issues which wrre
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being faced due to changes incurred in the interest rates in commercial banks. It has been analysed here that commercial bank makes
changes in the interest rates which are in relation with meeting the competition among market, increasing the financial stability,
liquidity as well as attracting the large number of stakeholders to the firm.
Government in Tajikistan makes various plans regarding revolutionary changes in the economic conditions which will be help in
governing the operational activities of banks with consideration of improving GDP ratio, Inflation control as well as raising the
currency value in the international market. Thus, such planning and operational needs affects and brings reforms in banking practices.
Increment in the interest rates will have impacts on the operational tendency and performance which will be helpful in governing the
tasks and managing the business issues. Main concerns and planning of the government in terms of meeting the goals as well as
reaching to the appropriate solution which will be effective and adequate in analysing the current situation of the nation as well as the
financial changes in the international market. However, as per analysing the objectives of the research projects on which it can be said
that, the current study and the market conditions which will be effective in analysing the interest rates in the commercial banks of
Tajikistan with an approach towards meeting the goals and making appropriate ascertainment of the operations.
In accordance with the proposed theories, models and analysis for investigating the occurrent behind variations in the interest
rate which have had addressed the issues faced by professionals at commercial banks in Tajikistan. Therefore, the study has been
based on considering the risks and issues in the banking practices while making transaction entries as well as in generating revenue.
The interest rate charges, fees and various relevant transactional charges are the prime sources through which a banking entity have
become able to gather the relevant amount of funds which have been reflecting the positive responses with impacts to have appropriate
gains and analysis over the database. To improve the operational efficiencies in the banking system on which governance and policy
making are the prime concern which are has to be acknowledged by professionals.
After the accession of WTO there has been increment in liberalised banking and financial operations in the commercial banks. It
was a revolutionary change in operational practices which have impacted on governing the tasks and managing the operations at the
right time. The study sets out to examine the degree to which theoretical underpinnings of the McKinnon and Shaw framework
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manifest in the economy and further to examine the contribution of financial liberalisation to economic growth. The empirical
undertaking to validate this assertion will include co integration analysis. Also, this time period encompasses the pre-reform era which
signifies financial repression and includes post reform era that is indicative of financial liberalisation. Prior to applying formal
econometric methodology, it is important to ascertain the behaviour of the data through the use of descriptive statistical tests and
simple correlation. Some of the statistical tests include the mean, variance, standard deviation, skewness, kurtosis and normality of the
data. Co integration allows analysis into the existence of a long run stable relationship between various pertinent variables such as
financial development proxies, financial liberalisation proxies, interest rate, savings, growth and investment. Analysis over such facts
and figures will be adequate for reaching to the final solutions and suggesting to the professionals at commercial banks in Tajikistan.
The impacts of WTO accession which was based on improving the financial conditions in similar economies on which loans,
borrowings as well as various benefit have been awarded in the trade practices among such nations. Thus, the reduction in the rates of
exchanges and interest rates charges among each other will be executed and managed as per upbringing the operational control over
the financial market. There has been assessment of income generated by commercial banks through interest rate liberalisation with
considering the quantitative methods. Thus, the outcomes determined that there have been huge impacts and variation incurred due to
changes have been made in the operational activities and the interest rates of the banks. There will be influences of various consumer
disclosure which brings information regarding the transactional practices performed by banks in a certain period. A clear information
regarding the operational practices will help in making reliable auditing of all accounts. Thus, the chances of having manipulation in
funds will be reduced which accentuate the better consumer relationship and financial governance in the firm. Thus, buyers will have
effective trust as pert having secured funds for operation.
6.3 Contribution to theory or knowledge
The interest rate fluctuations are carried for and analysed from the perspectives of commercial banks in Tajikistan up to a high
extent. The operational activities of commercial banks are increased up to a major extent because of fluctuation in the interest rate in
effective manner. The contribution of the theoretical framework such as McKinnon and Shaw framework in effective manner. The
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framework has provided with reference to finance and growth. McKinnon and Shaw developed this framework for identifying
enhancing growth effects made by financial liberalisation with contrast to financial repression. They presented the argument that
financial sector of the country can effectively raise savings volume, quality and quantity of investment in the best manner possible. It
can be analysed that this theoretical framework has contributed in assessing effect on operational activities of commercial banks in
Tajikistan and as to how such fluctuations lead to affect operational efficiencies up to a major extent. Moreover, it can be said that if
interest rate fluctuation are reduced in the economy, financial sector may boom which will be beneficial for the economy in effective
manner. Moreover, role of financial sector is to enhance the flow of savings by properly creating incentives.
For accomplishing higher amount of savings and increase in rates of investment, abolishing interest rate ceilings is required. It
is then advised for giving up seignorage by formulating adequate inflationary monetary policies in the best manner possible. It can be
analysed that real interest rate must rise to market clearing values and as a result, increment in savings will be attained in effective
manner. The significant factor behind the theory is that temporary higher growth rates are being accomplished in it. Other developing
countries follow policy advice given by McKinnon and Shaw which results in accomplishing significant elevation in growth rates and
as a result, equilibrium is achieved between high and moderate real interest rates. It has been predicted that financial liberalisation
would lead to reduction or slow down of economic growth.
The financial repression has been major focus of McKinnon and Shaw as they have argued that this policy leads to diminishing
economic growth of the country in the long run. This is evident from the fact that reduction in funds volume are attained which are
available for investment purpose. This means that investment is not injected and as a result, financial institutions cannot perform
adequately leading to hampering their economic growth up to a high extent. It can be ascertained that if the government of Tajikistan
is not able to collect tax revenue, it then imposes financial repression measure as a implicit tax on the financial sector. It can be
assessed that financial repression is severe form of restriction of financial and is adopted by government when tax raising power is
low. Reserve and obligations of holdings of government bonds help concerned authorities for effectively diverting savings to public
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sector at low costs. The commercial banking sector is adequate for it as it becomes difficult for extracting seignorage from bond and
equity market.
6.4 Contribution to practices
The practices are being implemented showing that government of Tajikistan has accessed to the WTO. The interest rate
fluctuations in the country affects commercial banking sector up to a major extent. It can be said that financial liberalisation has been
applied which provide clarity that reforms will be attained in banking sector and stabilization would be accomplished in a better
manner. Moreover, interest rate liberalisation is a policy which is initiated by the government in which from tightly controlled system
where PBOC sets on monetary policy that are based on quantitative targets such as quotas of loans and are to market system where
policies are based on market forces and are driven by it. It does not mean to letting go all of control but includes process of easing off
control to market forces quite effectively. This will initiate and impact economy of Tajikistan which has been tightly controlled by the
government and is required that efficiencies needs to be attained.
On the other hand, statistical techniques have been applied which provides clarity that operations are affected of commercial
banks due to major fluctuations in interest rates and needs to be controlled in a better manner. It means that stabilization in interest
rates should be made and achieved within timely manner so that operations may not be affected and profits could be generated by
maximising customer satisfaction in the best manner possible. WTO accession by Tajikistan will be beneficial for correcting on
interest rate fluctuation which are attained by government leading to accomplishment of stability in effective way. This means that
commercial banks will be able to enhance inflationary measures and as a result, operational activities will be enhanced in a better
manner. Moreover, it can be said that firm is required to provide efficiencies in a better manner. By adhering to the WTO accession,
commercial banking sector will be able to attain efficiency as interest rate fluctuations will be handled in a better manner.
It can be said that financial liberalisation are beneficial for the firm as restrictions on financial markets and financial
institutions are reduced or even eliminated. This leads to control being driven away by market forces in a better manner and control by
government policies are alleviated up to a high extent. In relation to this, it can be said that banking firms will be able to enhance their
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position in the long run and as a result, efficiencies will be gained in effective manner. The resultant factor would be fruitful for the
firm as it will be able to attain control over its operational activities and could be able to serve to customers with ease. The
liberalisation would be fruitful for overall economy of Tajikistan and will initiate healthy growth in its banking sector and as such,
efficiencies will be gathered. The commercial banks will be able to accomplish efficiency and customer would be served with better
and superior services in effective manner. Thus, it can be said that after accession to WTO, Tajikistan economy will rise.
6.5 Recommendations
As per analysing the study and the outcomes determined through it on which it can be said that, there have been various
statistical technique such as descriptive analysis is being used for the study. Tajikistan has been facing various economic issues on
which interest rate fluctuation is the prime concern of the government. It affects the GDP rate, Inflation as well as poor financial
stability that have affected towards increasing the prices for commodities. There is various recommendation to the professionals of
commercial banks in Tajikistan in relation with improving the banking efficiencies as well as managing the operational practices to
have effective execution over the banking operations. There have been huge fluctuations in the interest rates, currency rate of
Tajikistan with respect to USD which affects the trade practices in-between countries. The impacts of Global financial crisis had been
making huge impacts on the banking activities which can have negative impacts on the gains and revenue generated by them in due
period.
Issues of losing the potential consumers to the banks have risen in past several years on which it is required to introduce the
society with new and strategic plans which will help them in governing the operations. It will also be beneficial to the buyers to have
faithful reliability over banking operations as well as they will feel secure towards the invested funds by them in the banks. In
accordance with the various banking aspects where it can be said that, there are several challenges and obstacles which will be
summative to professionals in meeting the targets and managing the obstacles to overcome with issues. There are several suggestions
which has been presented by the researchers in terms of improving the commercial banking system in Tajikistan. This research project
has assessed various issues which are being faced by banking industries in respect with the fluctuation in operational practices. There
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are challenges that affects the banking operations on which interest rates fluctuation are the prime concerns and obstacles stated in the
market.
To mitigate banking challenges as well as improving the banking efficiencies will be effective in analysing the issues and
meeting the targets at the right time. There is requirement of planning the strategic which will develop policies and framework in
attaining the operational targets and expansion of industrial operations. However, with respect to the obstacles there are several
recommendations which will be helpful to the banking professionals such as:
 There must be control and ascertainment of the deregulatory authorities stated in country have made huge impacts on changing
operational variations as well as development of various aspects. Therefore, it is required that the professionals must be
attentive towards changing governmental plans and policies which will assist them in overcoming with the operational
discrimination. It has been found that, changing plan will also assist the professionals in making revolutionary changes in the
interest rates which have been properly analyzed from research study. Government plans and policies must be acknowledged
and as a result, fluctuations may be determined and mitigated up to a major extent.
 There have been plans and revolutionary changes which have been considered by the banking professionals in terms of other
economic factors such as taxation, exchange rates as well as various socio-economic plans which will help in bring stability in
the economy. In accordance with such variation there will be indirect impacts on the banking policies and procedure of doing
the operational practices in the market. As per findings, this will help to minimize the interest rate fluctuations and a result,
firm may be able to attain efficiency and economy may become stable as per the research findings.
 There must be use of effective promotional techniques in terms of communicating the interest rates offered by the business
with respect to meet the targets in the right way. As per the research findings, disclosing items to stakeholders enhances level
of transparency with regards to financial performance of company. The disclosure of the financial statement as well as banking
performance among the stakeholder will bring them appropriate information regarding the performance and the profitability of
the banking industry in respect with fetching their faiths and interest towards the organization.
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 It is required that the banking professionals must implicate the separate risk management system in the banking operations
which will be effective in terms of mitigating the various external as well as internal risks in the business. However, there are
several obstacles which are required to be meet by the professionals with respect to attain the goals and meeting the targets at
the right time. In accordance to research findings, by implementing risk management system, interest rate risk can be mitigated
quite effectually and thus, economic stability can be accomplished.
 Risks which are associated with the credit, market, financial as well as operational are required to be executed by the banking
professionals which will be helpful in terms of developing the policies and framework to eliminate such issues. The risks can
be reduced but it cannot be eliminated in nature. Thus, it will be suggested to the professionals to develop techniques in
becoming well prepared and attentive towards overcoming with such factors and mitigation of the obstacles.
 There must be increment in the technical operations of the business such as software has been used in inter-banking
transactions as well as popularity between consumers. The software of application required to be simple and easy as it can be
easily access by the consumers and they will feel safe in transacting funds.
 Ensuring proper security and prevention form cybercrime will help in creating the trust and loyalty among the potential
investors of banking firm. It will be adequate in monitoring the data base and managing the operations through such
implications.
 Determining the appropriate rate of interest which are to be charges on the services offered by banking industry in respect
retaining proper amount of revenue. Thus, consumers are required to be satisfied with the banking activities, policies and
schemes offered which will retain their trust and faith in the organization for making adequate ascertainment of the data to be
analyzed for performing the researches in the market.s
 Installation of appropriate anti-virus software and regular auditing of the banking operations will be adequate in managing the
obstacles as well as management of financial status of the organization among the society. It will help the banking
81

professionals in terms of protecting the confidential information from unlawful and misrepresented information stated in the
business.
6.6 Limitations recognised in research study
In the process of conducting the research analysis over the obstacles which have been faced by the commercial banks in
Tajikistan on which analysis of such issues have created various obstacles. There are several challenges which has been faced by the
researcher such as selection of relevant sources, data collection as well as analysis to bring the accurate outcomes among the
professionals at commercial banks of Tajikistan. To analyse the banking issues and obstacles have been faced by industries on which
there have been selection of 150 questionnaires which were asked several questions and that have helped in managing the business
operations. The interviews with 8 professionals had been conducted by the professionals which did not bring the satisfactory outcomes
to the professionals.
These professionals were hesitated in terms of describing the operational issues and decision their bank’s performance.
However, it has been properly recognised and analysed by the researcher that they have kept all information very confidential as well
as secure that there will be no personal damage will insecure to the banking professionals in the society. Moreover, their responses and
answer to each question had been recognised and recorded in a manner that there will be drafting of adequate analysis over the
obstacles that had been faced by them. Further, there are problems relevant with the time limit and resources available for the study
which were not appropriate and effective in managing the issues and overcoming with such challenges. Time left for analysing the
data by implicating the statistical tool of SPSS was not appropriate as it has been aimed by researcher to collect more information and
have appropriate ascertainment of the current banking issues.
It has been planned by researchers that they will make appropriate analysis over current market scenarios, analysing the banking
problems due to interest rate functions as well as various internal operational challenges to be recognised on which they will be
effective plan and suggest the techniques to banking professionals. Thus, such suggestions will be helpful in mitigating the obstacles
and risks which were being associated in the banking industries. In addressing the risk factors which are normally being seen in the
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banking industries had been analysed by the researcher which is required to have in-depth ascertainment of problems and issues which
will be appropriate in governing the tasks and meeting targets at the right time. Further, it can be said that there has been requirement
of in-depth research over the interest rates variation in Tajikistan and their impacts on national commercial banking system.
6.7 Further study for future research
In respect with the methods and techniques which have been used by the researcher for processing the study which is consisting
the methods of collecting data, analysing such information to draft a reliable result. Thus, as ascertainment of the outcomes will be
effective and attentive to make better operational analysis over data base.In the present research project there had been use of
qualitative and qualitative techniques for collecting information and analysing the outcomes. While, it will be suggested that for the
further studies there must be use of qualitative techniques as well as conduct tests to analyse the data base. SPSS had been used by
researchers in analysing the opinions of selected respondents on which it can be said that, there must be implication of alternative
techniques to tests the hypothesis. The question which were asked to the professionals instead of primary analysis there must be
collection of some real and relevant data. It includes, economic elements such as GDP rates, inflation rates as well as interest rates
among the banking practices in Tajikistan.
Thus, in respect with using the real data and creating hypothesis will be helpful to the industry in meeting the obstacles and
analysing the outcomes that will be helpful in governing the tasks in a qualitative manner. Moreover, in recommendation for the
reforms and revolutionary ideas among the banking professionals which have also being required here that the professionals must keep
proper records of the data base and analysis over obstacles. Moreover, in this case, it can be said that for the future studies there must
be use quantitative techniques and must implicate the real or reliable data set to have better analysis over the economic conditions of a
nation as well as governmental plans and policies with respect to mitigate such business challenges.
83

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Uzbekistan. The Journal of International Trade & Economic Development. 26(6). pp.677-692.
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countries. International Journal of Business and Social Research. 6(7). pp.01-11.
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economies. International Economics. 141. pp.1-14.
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Online
Redivision of the banking market going on in Tajikistan. 2017. [Online]. Available through :<
https://www.asiaplus.tj/en/node/239410>.
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86

APPENDIX
QUESTIONNAIRE
Demographic questions:
Question 1: Gender
Male ()
Female ()
Question 2: Age as per below listed group:
A. 20-29 ()
B. 30-39 ()
C. 40-49 ()
D. 50-59 ()
E. Above 60 ()
Question 3: Language you speak and understand?
A. English ()
B. Arabic ()
C. Urdu ()
D. Russian ()
Question 4: How qualified are you?
A. Doctorate in any field ()
B. Post graduate degree ()
C. Diploma ()
D. Graduate ()
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Question 5: Period of organizational occupied land or building?
A. 2-5 years ()
B. 5-8 years ()
C. 8-10 years ()
D. More than 10 years ()
Likert Scale Questions:
1 = Strongly agree
2 = Agree
3 = Neutral
4 = Disagree
5 = Strongly Disagree
S.
No.
Questions 1 2 3 4 5 Total
1 Does your bank facilitate the appropriate
interest rate in deposits?
55 35 30 20 10 150
2 Are the online operations performed by
your bank quite satisfactory?
62 38 25 15 10 150
3 Do you feel safe while making
transactional operations?
50 40 30 20 10 150
4 Is your bank’s asset liability management
units play main role in addressing the
issues?
46 34 32 28 10 150
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5 Do you believe that vulnerability of a credit
union’s financial condition in adverse
market movements?
62 38 25 15 10 150
Interview questions:
Question 1: What are your opinions towards impacts of liberalisation on commercial bank
lending rates?
Question 2: How do you find that your bank have influences due to commercial bank lending
rates?
Question 3: As per your opinion, what are the cost factors that affect determination of lending
rates in commercial banks in Tajikistan?
Question 4: What are the general factors which are relevant with cost of loans?
Question 5: Which are the inflation factors that affect lending rate determination?
Question 6: According to you, what are the impacts of banking industry competition that possess
variations in lending rates of commercial banks?
Question 7: What are the types of interest rate practices in your bank?
Question 8: According to you, what are the main features of interbank clearing and settlement
system? Do they have any influences as per changing lending rates?
Question 9: How interest rates are determined in Tajikistan? Is there any rate which are
administratively set?
Question 10: Do you believe that there are influences of the governmental policies in making
changes in commercial bank lending rates?
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Interview transcript:
Interview 1:
Questions Answers
Theme 1: Your opinion towards impacts of
liberalisation on commercial bank lending
rates
Well as I have analysed, I think liberalisation is
the term where most of the private industries or
sectors were being banned by government.
Thus, it creates obstacles in their performance
and operational growth. Impact of
governmental plans and policies are mainly
affecting the banking sector in country.
Theme 2: How do you find your bank have
influences due to commercial bank lending
rates
I believe that in analysing the answers of
various professionals which were being asked
these questions that have represented the
adequate determination of the facts. Thus, in
this case, there have been influences of various
factors which distract in banking operations
that affect the overall operational activities.
Theme 3: The cost factors that affect
determination of lending rates in
commercial banks in Tajikistan
I can say that in analysing the factor which
affect lending rates in banks are generally
relevant with expenses and operational
variations. However, there have been various
90

determinants which create obstacles in
analysing the data base and abounded banking
operations as with affecting lending rates.
Theme 4: The general factors which are
relevant with the cost of loans
I think it has been analysed here that there are
various general factors which will affect the
cost of loan in an industry. It creates the
obstacles in the banking operations of the
commercial banks as if the bank borrows funds
which is not capable of meeting such costs in
the future. Thus, these are the debts which
create issues in the survival of such financial
institution.
Theme 5: The inflation factors, that affect
lending rate determination
I believe that in accordance with analysing
factors which influence the interest rates in a
country. Therefore, impacts of inflation rate
fluctuation in a nation will have positive as
well as negative impacts on the lending rates.
Theme 6: The impacts of banking industry
competition that poses variations in the
lending rates of commercial banks
I believe that there are impacts of raising
competition in the nation which will affect
operational policies for banks. During the
global financial crisis when in motive of
enhancing the sales in banks for meeting the
91

market competition, bankers have facilitated
the loans on lower interest rates. Thus, due to
such impacts, there have been changes in their
lending rates for meeting challenges in the
market.
Theme 7: The type of interest rate practices
in your bank
Well I can say that, bank borrows funds from
other banks that will result in uplifting the
operational aspects of the banks. Thus, the
variations in inter-bank transactions there have
been various changes and variation which
brings them gains and losses on the same
respect.
Theme 8: The main feature of interbank
clearing and settlement system. They have
any influences as per changing lending
rates.
I think in terms of analysing the payment
system in Tajikistan where the main emphasis
of the government had been payable on the
realization and financing operation performed
in the country.
Theme 9: The process for interest rates
determination in Tajikistan and
identification of rates which are
administratively set
Well, it has been consistency of various factors
which will have impacts on identifying the
interest rates in Tajikistan. It comprised of
various classification policies which have been
based on various activities such as bank's
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classification as well as of Tajikistan's
classification theory.
Theme 10: There are influences of the
governmental policies in making changes in
commercial bank lending rates.
I think government in Tajikistan have huge
implications of policies which create obstacles
in the banking industry. The main motive of
economist in a country which is basically
determination of appropriate sources to rise the
currency value as well as reduction in the
inflation rate.
Interview 2:
Questions Answers
Theme 1: Your opinion towards impacts of
liberalisation on commercial bank lending
rates
The changes in taxation, rate of exchange as
well as interest rates in operations are mainly
affecting operational practices of private banks.
I believe that such influences have uplifted
level of competition among banking firms as
well as which impacts lending rates.
Theme 2: How do you find your bank have
influences due to commercial bank lending
rates
I believe that it mainly affects the sales growth,
efficiency as well as preference of industry.
The rise in interest rates which have impacts on
reducing public borrowings as well as increases
93

the debts of industry.
Theme 3: The cost factors that affect
determination of lending rates in
commercial banks in Tajikistan
I have analysed that it mainly includes the
merger and acquisition of small banking units,
intensity of capital exertion by creditors in
operational administration, policies for
enhancing risk reduction arrangements.
Theme 4: The general factors which are
relevant with the cost of loans
The viability as well as capacity of firm in
terms of financial structure will define effective
cost-efficient factors to improve business
operations.
Theme 5: The inflation factors, that affect
lending rate determination
Inflation in general terms is known as rise in
prices of commodities which is relevant with
issues such as dependency as well as poor
currency rate of nation.
Theme 6: The impacts of banking industry
competition that poses variations in the
lending rates of commercial banks
Thus, due to some impacts, there was no
money left in the banks as well as in
circulation.
Theme 7: The type of interest rate practices
in your bank
There have been various kinds of financing
activities which are needed to be done with the
motive of making appropriate changes and
operations that will lead in managing the
operational analysis.
94

Theme 8: The main feature of interbank
clearing and settlement system. They have
any influences as per changing lending
rates.
In relation with ascertaining the inter-bank
clearing or credit settlements, there are several
processes. This includes principle of reliability,
acceleration of settlement transmission and
expediency.
Theme 9: The process for interest rates
determination in Tajikistan and
identification of rates which are
administratively set
It can be said that it is based on current interest
rate structure which will help in making proper
analysis of the activities.
Theme 10: There are influences of the
governmental policies in making changes in
commercial bank lending rates.
Government mainly creates policies relevant
with interest rates, taxation, report and import
duties which were analysed for balancing the
current operations of country.
Interview 3:
Questions Answers
Theme 1: Your opinion towards impacts of
liberalisation on commercial bank lending
rates.
The main motive of these banks is based on
retaining higher profitability as well as higher
consumer index. This will help them in
retaining appropriate growth in sales or
revenue.
Theme 2: How do you find your bank have There are various plans and policies which
95

influences due to commercial bank lending
rates.
were being stated by the government such as
monetary policies, taxation, economic changes,
etc.
Theme 3: The cost factors that affect
determination of lending rates in
commercial banks in Tajikistan.
There have been influences of various cost
factors and the economic elements which affect
lending rates. It includes the monetary policies,
relationship with other nations, GDP and
inflation rates.
Theme 4: The general factors which are
relevant with the cost of loans
In respect with granting the loans among
corporation as well as individual which will
have impacts on raising the funds of
organisation. Moreover, borrowing a certain
amount of loan will require the payments of
such borrowed amount in a required period.
Theme 5: The inflation factors, that affect
lending rate determination
In this approach, there has been various issues
such as dependency of Tajikistan over other
nations in terms of obtaining the natural
resources. These create reduction in the
currency value as compared with other nation
which in turn accelerates inflation rate.
Theme 6: The impacts of banking industry
competition that poses variations in the
People at that time have made investment in
real state which results in reducing the
96

lending rates of commercial banks monetary circulation in countries. Therefore, it
brings rise to the inflation states, reduction in
GDP as well as GFC impacted in economy.
Theme 7: The type of interest rate practices
in your bank
There are generally simple and compound
interest rates which have been charged against
the amount of loan granted to a person.
Theme 8: The main feature of interbank
clearing and settlement system. They have
any influences as per changing lending
rates.
Such analysis helps the banking organisations
in terms of having adequate operational
analysis and management of various
approaches. However, the advantages of such
transnational process are like banks charge
fewer rates in clearing any account or making
profitable rise in the operational aspects.
Theme 9: The process for interest rates
determination in Tajikistan and
identification of rates which are
administratively set
There has been administration over controlling
the interest rates as well as appropriate wealth
management.
Theme 10: There are influences of the
governmental policies in making changes in
commercial bank lending rates.
Frequent changes in the operations of banking
firm which have affected policies as well.
Interview 4:
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Questions Answers
Theme 1: Your opinion towards impacts of
liberalisation on commercial bank lending
rates
The deregulatory authorities stated in country
have made huge impacts on changing
operational variations as well as on
development of various aspects.
Theme 2: How do you find your bank have
influences due to commercial bank lending
rates
The operational aspect of commercial banks is
mainly relevant with providing better banking
services to investors. Thus, the changing rates
will affect the loan amount granted by banks as
well as the terms for borrowing the amount.
Theme 3: The cost factors that affect
determination of lending rates in
commercial banks in Tajikistan
Thus, such factors have negative as well as
positive impacts on country which bound the
economists in analysing the current scenario
and planning for improving the internal
environment.
Theme 4: The general factors which are
relevant with the cost of loans
Controlling the costs of lending the amount
which is incorporated with several factors such
as executing the interest rates, preparedness for
emergency condition, economic stability,
analysing the fiscal performance of the nation
as well as ascertaining the debts.
98

Theme 5: The inflation factors, that affect
lending rate determination
Impacts of rising the interest rates or lending
rates among commercial banks. It comprises of
various factors such as fractional-reserve
banking, quantity theory of money, interest
rates, loan, inflation and savings, quantity
theory of money and federal open market
committee.
Theme 6: The impacts of banking industry
competition that poses variations in the
lending rates of commercial banks
Tajikistan has been engaged in various
financial obstacles as there is higher
competition as well as rise in inflation results in
enhancing the interest rates.
Theme 7: The type of interest rate practices
in your bank
On the basis of such interest rates, they have
higher earnings and revenue for development
of various operational practices. In particular,
due to the accelerated inflation rate as
compared to the expected decrease, as well as
the appreciation of the exchange rate.
Theme 8: The main feature of interbank
clearing and settlement system. They have
any influences as per changing lending
rates.
There will be rise in the operational efficiencies
of the banks which in turn will be helpful for
managing the transactional obstacles.
Theme 9: The process for interest rates In respect to manage the operational demands
99

determination in Tajikistan and
identification of rates which are
administratively set
in the market. Thus, in analysing the obstacles
there can be influences for adjusting the terms
and risks associates with business operations.
Theme 10: There are influences of the
governmental policies in making changes in
commercial bank lending rates.
As per analysing the impacts of GFC attacks in
the country, there has been rise in the inflation
rates, unemployment and several unfavourable
economic rates which have affected operations
of firm.
Interview 5:
Questions Answers
Theme 1: Your opinion towards impacts of
liberalisation on commercial bank lending
rates
As per considering the banking preferences,
there will be higher concerns relevant with
generating profits as well as reducing costs
implied in each banking activity. It has
analysed that in October 2008, there was a total
debt of US$700 million on the cotton sector
which are extremely funded in consideration of
pledges and guarantees by National Bank of
Tajikistan.
Theme 2: How do you find your bank have Through such sources the banks will have
100

influences due to commercial bank lending
rates
appropriate market share and satisfactory
amount of capital in the business. therefore,
encouraging the consumers to make short term
borrowing will be helpful to the banking
industries in terms of having higher monetary
circulation as well as earning through interest
received by them.
Theme 3: The cost factors that affect
determination of lending rates in
commercial banks in Tajikistan
The growth rate in Tajikistan is not so
appropriate which states that small and medium
sized industries are not capable of retaining the
higher revenue as compared with the
multinational industries.
Theme 4: The general factors which are
relevant with the cost of loans
These are the factors which are needed to be
considered by the government and
professionals at banks for making fruitful
policies and operational development in the
work culture.
Theme 5: The inflation factors, that affect
lending rate determination
The biggest advantage of lending the short-
term loan is that, there will be lower risks of
having bad debts and frauds in financial
aspects.
Theme 6: The impacts of banking industry Competition in banking sector has also affected
101

competition that poses variations in the
lending rates of commercial banks
poor mechanism in management and operations
of firm. The impacts of such rising competition
in the operational activities of the banking
industry have negativity affected operations of
the firm.
Theme 7: The type of interest rate practices
in your bank
In the latter case, the situation of enterprises
that produce goods destined for export
deteriorates, as their competitiveness in the
world market falls. Exporting enterprises are
forced to adjust to the new condition increase
efficiency, sales growth of products inside the
country.
Theme 8: The main feature of interbank
clearing and settlement system. They have
any influences as per changing lending
rates.
There has been consideration of “contracts of
services on interbank settlements”, the banks
stated in country transit funds from one branch
to another.
Theme 9: The process for interest rates
determination in Tajikistan and
identification of rates which are
administratively set
The interest rate of return in short-term
borrowings are comparatively higher than the
long-term borrowings made by banks. Thus,
there are higher chances of having high
revenue and gains through the operational
practices.
102

Theme 10: There are influences of the
governmental policies in making changes in
commercial bank lending rates.
There have been various reforms and changes
in the operational analysis and determination of
accurate interest rates.
Interview 6:
Questions Answers
Theme 1: Your opinion towards impacts of
liberalisation on commercial bank lending
rates
these was the initiative which have been taken
by bank in context with promoting the
agriculture sector in country. Thus, on which
the creditor was ought to receive the securities
as compensation.
Theme 2: How do you find your bank have
influences due to commercial bank lending
rates
The short-term borrowings are benefited with
the low risk and higher return. Moreover, in
relationship with such benefits it can be said
that there are comparatively higher revenue and
gains as obtained by banks.
Theme 3: The cost factors that affect
determination of lending rates in
commercial banks in Tajikistan
It is due to dependency of this nation on other
nations. The domestic strength is not
appropriate in retaining appropriate
development in the economy of Tajikistan.
Instability in the current account of country
which will be managed through balancing the
103

payments and trades.
Theme 4: The general factors which are
relevant with the cost of loans
It will have prolonged to improve the browning
tendency as well as lending capacity of the
bank.
Theme 5: The inflation factors, that affect
lending rate determination
Ascertainment of the national growth with
considering such factors will help in uplifting
the economic conditions as well as bringing
favourable gains to the nation.
Theme 6: The impacts of banking industry
competition that poses variations in the
lending rates of commercial banks
The rise in competition in the banking sector
will bring reduction in the interest but on the
other side, it will affect the poor monetary
circulation in the environment.
Theme 7: The type of interest rate practices
in your bank
There has been preparation of various informal
and formal process by the banks which are
required for managing the risks. Therefore, the
changes in interest rates will affect the
economy and society.
Theme 8: The main feature of interbank
clearing and settlement system. They have
any influences as per changing lending
The impact of banking status and
condition which have impacts among the
consumers as they usually go for the banks
104

rates. which have higher revenue and turnover in a
period.
Theme 9: The process for interest rates
determination in Tajikistan and
identification of rates which are
administratively set
Thus, which reflects that it will be
profitable to make investment in such bank. On
the other side, the status and image of banks
will have risen expectations among the buyers.
Theme 10: There are influences of the
governmental policies in making changes in
commercial bank lending rates.
They have to be effective in terms of offering
the relevant services among professionals
which in turn will be useful for generating
appropriate capital gains. Thus, adequate
interest rates will also be accentuating to firm
in having extra and fruitful returns which will
enhance strength of organisation in mitigating
the financial risks.
Interview 7:
Questions Answers
Theme 1: Your opinion towards impacts of
liberalisation on commercial bank lending
rates
In this case, debts have been owned by
investors in financing cotton sector in the
economy. Thus, in 2009, the government of
Tajikistan was continuing to facilitate the funds
in agricultural sector with the help of
105

commercial banks without restricting of
limiting the borrowings to cotton growing.
Moreover, there had been various steps which
were taken by NBT with references to
liberalise the export of cotton.
Theme 2: How do you find your bank have
influences due to commercial bank lending
rates
Moreover, the financial inclusion will
ascertain the small banking units to make trade
practices in the market. It is because their terms
and consideration for operating the banking
practices are appropriate and liberal for the
borrowers.
Theme 3: The cost factors that affect
determination of lending rates in
commercial banks in Tajikistan
Raising the level of export’s income with the
imports. These are the accounting factors
which are affecting the economy and which
will reversely affect the interest rates of the
nation.
Theme 4: The general factors which are
relevant with the cost of loans
By luring the consumers as per offering, them
the higher interest on their invested amount of
funds in the banks will help the banks in
generating appropriate equity.
Theme 5: The inflation factors, that affect Adversely, it will affect the number of
106

lending rate determination borrowers in the firm. Thus, the higher rates
will also affect their capacity for making
returns to the bank. Moreover. In that manner
there will reduction in the number of
consumers to entity.
Theme 6: The impacts of banking industry
competition that poses variations in the
lending rates of commercial banks
Countries like Tajikistan will have various
obstacles which will result in inappropriate
internal management which will affect
economic activities in country.
Theme 7: The type of interest rate practices
in your bank
On the other side, the challenges and
competition among banking businesses have
been a challenging aspect which will affect the
lending operations of the firm. Therefore, the
rise in competition level also increase the
interest rates
Theme 8: The main feature of interbank
clearing and settlement system. They have
any influences as per changing lending
rates.
It encourages banking professionals for
retaining the higher earnings and revenue from
the external professionals which in turn
attentive towards generating higher profits.
Theme 9: The process for interest rates
determination in Tajikistan and
identification of rates which are
There have been various senior citizens which
were being facilitated with the pension scheme
presented by government on the basis of their
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administratively set services and efforts made in jobs. Thus, the
level of job done by them as well as the level of
efforts made by them have been converted into
the revenue payable by the government
throughout their life
Theme 10: There are influences of the
governmental policies in making changes in
commercial bank lending rates
Along with them there will be beneficiary from
their family which are a dependent person such
as their wives or children as per asking the
professionals that how satisfy their consumers
with the pension schemes offered by their bank
Interview 8:
Questions Answers
Theme 1: Your opinion towards impacts of
liberalisation on commercial bank lending
rates
Therefore, in Tajikistan commercial banks have
several operational activities which are
benefitting the buyers with securing their funds
as mentioned in their bank accounts. Thus, it
has been believed by the professionals which
are operating the banking activities in the
commercial banks of Tajikistan believes that
they are offering appropriate pension schemes
to their consumers and they are satisfied with
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the banking policies and regulation in this
approach
Theme 2: How do you find your bank have
influences due to commercial bank lending
rates
The government as well as commercial banks
are capable of meeting the requirement of
senior citizens in terms of benefiting them with
pension services.
Theme 3: The cost factors that affect
determination of lending rates in
commercial banks in Tajikistan
There have been various other operations
which are being awarded among the senior
such as terms deposits, fixed deposits,
borrowing scheme as well as special interest
rates on their invested fund in organization
Theme 4: The general factors which are
relevant with the cost of loans
There will be benefits and adequate rise in the
gains which can make beneficiary
improvements in the business.
Theme 5: The inflation factors, that affect
lending rate determination
there have been various social insurance claims
have been made by people with respect to their
applied bonds, funds, and the finance ministry
central treasury bonds.
Theme 6: The impacts of banking industry
competition that poses variations in the
lending rates of commercial banks
The impact of banking status and condition
which have impacts among the consumers as
they usually go for the banks which have
higher revenue and turnover in a period
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