Variation and Impact of Interest Rate in Commercial Banks in Tajikistan after WTO Accession

This document investigates the variation and impact of interest rates in commercial banks in Tajikistan after the country's accession to the WTO. It includes an analysis of data, themes, and conclusions. The findings and discussion cover topics such as online services, securities, and the role of asset liability management. The document also provides recommendations and acknowledges limitations.

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 Data analysis.....................................................................................................................1
4.2.1 Test/ Retest Reliability.............................................................................................1
4.2.2 Univariate statistics...................................................................................................8
4.2.3 Bivariate Statistics..................................................................................................19
4.2.4 Multivariate Statistics.............................................................................................27
4.3 Themes...........................................................................................................................37
4.3.1 Theme 1: How does liberalization affect lending rate of the commercial bank lending rates? 37
4.3.2 Theme 2: Does your bank has any influences due to commercial bank lending rates? 38
4.3.3 Theme 3: The cost factors affect determination of lending rates in commercial banks in Tajikistan 40
4.3.4 Theme 4: The general factors are relevant with cost of loans................................41
4.3.5 Theme 5: Influence of the inflation rate of the nation on the central bank interest rate policy and lending rate of
commercial banks............................................................................................................41
4.4 Conclusion......................................................................................................................42
CHAPTER 5: FINDINGS AND DISCUSSION.......................................................................................44
5.1 Introduction....................................................................................................................44
5.2.........................................................................................................................................48
5.2.1: Satisfaction through online services provided by bank.........................................48
5.2.2 Theme 3: Securities with making transactional operations....................................52
5.2.3 Theme 4: Role of banks’ assets and liability management for addressing financial issues 54

5.2.4 Theme 5: Satisfaction through interest rate charges on borrowed money..............61
5.3 Conclusion......................................................................................................................66
CHAPTER 6: CONCLUSION, CONTRIBUTION AND RECOMMENDATIONS......................................69
6.1 Review of aim and objective..........................................................................................69
6.2 Outcome of hypothesis tested.......................................................................................70
6.3 Contribution to knowledge.............................................................................................72
6.3.1 Theoretical contribution..........................................................................................72
6.3.2 Empirical contribution............................................................................................73
6.3.3 Practical contribution..............................................................................................73
6.4 Recommendations..........................................................................................................74
6.5 Limitations recognised in research study.......................................................................77
6.6 Further study for future research..................................................................................77
6.7 Personal reflection..........................................................................................................78
REFERENCES..............................................................................................................................79
APPENDIX....................................................................................................................................82

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
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 Data analysis
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, 5 industrial question are prepared solely and
not taken from any research paper or magazine. These questions will be 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
1

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: Cronbach alpha is the tool that is used to measure reliability of scale that is used to measure particular
variables. Commonly used scale is Likert scale and Cronbach alpha reflect whether by using this variable can be measured in better
way. In the present study Cronbach alpha value is 0.305 which means 30%. This reflect that scale that is used failed to measure
variable.
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.
2

Descriptive Statistics
N Minimum Maximum Mean Std. Deviation Variance
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
3

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:
Statistics revealed that most of banks are facilitating appropriate interest rate on deposits as value of statistics is (M = 2.29, SD
= 1.277). People are also quite satisfied with the online banking transaction facility that is provided by their bank in the Tajikistan as
indicated by the statistics (M = 2.15, SD = 1.252). People are also feeling safe while making banking transactions as indicated by the
value of the statistic (M = 2.33, SD = 1.251). Overall, it can be said that commercial banks in the mentioned nation in the past couple
of years make significant improvement in their technology base due to which people do not face any problem in the online
transactions and they are highly satisfied. Respondents believed that asset and liability management is the one of the main factor that
assist bank in paying due attention to address problems on time. This is indicated by the value of the statistics (M = 2.48, SD = 1.283).
Respondents also believed that adverse market movements are greatly affecting banks financial condition as reflected by the statistics
(M = 2.15, SD = 1.252.
In order to analyze results at more granular level detail discussion on obtained results is carried below.
Does your bank facilitate the appropriate interest rate in deposits?
4

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.
Are the online operations performed by your bank quite satisfactory?
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
5

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
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.
Do you feel safe while making transactional operations?
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 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.
Is your bank’s asset liability management units play main role in addressing the issues?
6

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 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.
Do you believe that vulnerability of a credit union’s financial condition is same in adverse market movements?
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 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
7

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.
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
8

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
Mean value is 2.29 which means that sample respondents are agree on the fact that bank is facilitating appropriate interest rate on the
deposits.
Tests of Between-Subjects Effects
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)
9

10

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
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)
11

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
12

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)
13

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
14

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)
15

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
16

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)
17

18

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. Means that central bank or reserve bank of the nation time to time change interest rate. With change in these interest rates
commercial banks also change their interest rate. Such kind of change determine how much loan people will take in the upcoming
time period. Thus, revenue get affected by the intertest rate and due to this reason significant difference is find out. 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.
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
19

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
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. Value of level of significance is p = 0.812>0.05 in case of
person chi square. On other hand, in case of likelihood ratio value of level of significance is p= 0.706>0.05. In case of linear by linear
20

association value of level of significance is p = 0.171>0.05. On basis of all these three statistics it can be said that there is no
significant relationship between variables . 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
Does your bank facilitate the
appropriate interest rate in
deposits?
1 19 17 11 8 1 56
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
21

N of Valid Cases 150
a. 13 cells (52.0%) have expected count less than 5. The minimum expected count is .67.
Interpretation: Value of level of significance is p = 0.275>0.05 in case of person chi square. On other hand, in case of likelihood
ratio value of level of significance is p= 0.229>0.05. In case of linear by linear association value of level of significance is p =
0.905>0.05. On basis of all these three statistics it can be said that there is no significant relationship between variables 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
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
22

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
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.
23

Interpretation: In present case there are two variables that are analyzed namely satisfaction level of individuals on operation
performed and role of asset and liability management in addressing issues. Value of level of significance is p = 0.006>0.05 in case of
person chi square. On other hand, in case of likelihood ratio value of level of significance is p= 0.00>0.05. In case of linear by linear
association value of level of significance is p = 0.758>0.05. On basis of all these two statistics namely it can be said that there is no
significant relationship between variables and null hypothesis accepted.
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
5 5 1 0 1 3 10
Total 50 40 30 20 10 150
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
24

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: In table given above it can be observed that there are two variables namely safety people feel in online transactions
and role of asset and liability management in addressing issues. Value of level of significance is p = 0.054>0.05 in case of person
chi square. On other hand, in case of likelihood ratio value of level of significance is p= 0.050>0.05. In case of linear by linear
association value of level of significance is p = 0.919>0.05. On basis of all these three statistics it can be said that there is no
significant relationship between variables. Null hypothesis accepted.
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
25

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
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: Two variables analyzed above are impact of adverse market condition on the credit union financial condition and role
of asset and liability management in addressing issues. Value of level of significance is p = 0.006>0.05 in case of person chi
square. On other hand, in case of likelihood ratio value of level of significance is p= 0.00>0.05. In case of linear by linear
26

association value of level of significance is p = 0.758>0.05. On basis of all these three statistics it can be said that there is no
significant relationship between variables. Null hypothesis accepted.
4.2.4 Multivariate Statistics
Descriptives
N Mean Std.
Deviation
Std.
Error
95% Confidence
Interval for Mean
Minimu
m
Maximu
m
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
Tota
l 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
27

Tota
l 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
Tota
l 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
Tota
l 150 2.15 1.252 .102 1.95 2.36 1 5
ANOVA
28

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
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
29

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
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
30

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
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
Pearson Correlation -.112 1.000** .113 -.025 1
31

Do you believe that,
vulnerability of a credit
union’s financial
condition in adverse
market movements?
Sig. (2-tailed) .171 .000 .169 .759
N 150 150 150 150 150
**. Correlation is significant at the 0.01 level (2-tailed).
Interpretation
Correlation value in case of variables online operation performed by the bank is quite satisfactory and safety that people feel
while making online transaction is 0.113 which is quite low. This means that online operations performed by the bank are not playing
any role in making people safe. Correlation value in case of variables asset and liability management role in addressing issues and
interest rate given by the banks is -0.25 which means that there is no correlation between both variables.
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
Model Summary
Model R R Square Change Statistics
32

Adjusted R
Square
Std. Error of
the Estimate
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.
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
33

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
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
34

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
35

(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?
In the table given above it can be observed that value of R is 0.180 and same of R square is 0.032. This means that there is less
correlation between variables and only 3% of variation of the dependent variable is explained by the independent variable. Value of
level of significance is 0.186>0.05 which means that there is no significant difference between the variables. It can be said that interest
rate given by the commercial bank is not getting affected by the vulnerability of financial condition of the banks, asset liability
management and safety that people observe while making transactional operations. Null hypothesis accepted.
Interview:
36

4.3 Themes
4.3.1 Theme 1: liberalization impact on the lending rate of the commercial bank lending rates
Liberalisation is a term where most of the private industries or sectors are allowed by the government to do business in the
nation. Liberalization lead to ease of obstacles in their business setup in the nation. 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 ). All interviewees are agreed with this statement. It is also proved from regression
analysis and other approaches that interest rate have direct impact on the bank revenue.
As stated by CEO,
“I have analysed that the main motive of these banks is based on retaining higher profitability as well as higher consumer
satisfaction index. If customer will be satisfied it will promote positive word of mouth marketing of the company name. 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 . 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.
37

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).
“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”
4.3.2 Theme 2: Bank 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. 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,
38

“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.
“CEO stated that, exporting enterprises are forced to adjust the changed global economic 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).
39

4.3.3 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 ratesAlong 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 environmentIt 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”
40

4.3.4 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
with granting the loans among corporation as well as individuals, charging a specific interest rate will bring profitable returns to a
commercial bank.
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.
4.3.5 Theme 5: Influence of the inflation rate of the nation on the central bank interest rate policy and lending rate of
commercial banks
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,
41

“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”
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.”
4.4 Conclusion
On this 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
42

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.
43

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. Results reflect that there is close relationship between asset liability
management in the commercial banks with the level of safety of the transactions that is provided by the bank. This is because if asset
and liability management will be proper then in that case bank will be in good condition and on same state it earn good profit. Earning
of higher amount of profit lead to making heavy investment in the technology which ultimately provide benefit to the people. This is
also evident from the literature review where it is identified that there are large number of people who believed that if bank will be in
profit it will make huge investment in the technology base which ultimately provide safety to the bank customers.
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. According to
44

Dash. and Pathak, (2016)asset and liability management must be there in the company because if there is good management of both
then in that case condition of the bank remain good in the volatile market. This is also indicated by our results where it is identified
that if any bank asset and liability management is good then in that case people feel safe to make transactions through commercial
bank. Thus, both researches on this point have consensus.
If 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. On the other side, the status and image of banks will
have risen expectations among the buyers. 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. Therefore, the main support of WTO had been based on making adequate increment in the economic
condition of the nation. 5.2 Theme 1: Facilities provided by bank with relations to interest rate in deposits:
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
45

framework of global approach of macroeconomic balance, financial liberalisation and structural modifications. As a result of overall
liberalization, 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. Results indicate that interest rate on the commercial banks is 3.80% which is quite low then the
nations like India where interest rate on deposits is 7% to 8%. Lending rate in the Tajikistan is 13%. Thus, it can be said that there is
huge difference in the interest rate in respect to deposits and loan. Such a huge difference greatly affect people as they receive less on
deposits and have to pay more on loan. It can be said that condition in the Tajikistan is not good.
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 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
46

(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
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 expand their business 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.
47

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.
5.2
5.2.1: 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
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
48

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.
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.
49

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. This is one of the key finding of the research study. 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 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
50

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.
It is also find out from the research that 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 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
51

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.
5.2.2 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
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. Thus, in
order to ensure there will be no problem of cash management commercial banks have to maintain asset and liability. This is also
evident from our research where it is identified that asset and liability management matter a lot for the commercial banks. 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
52

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
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. Our research also
indicate in the literature review that banks develop their own inhouse technology infrastructure but its maintenance is also very
important otherwise technical errors comes in the service and ultimately customer face problem in the online transaction. Along with
this, there will be obstacles relevant with the unethical conduct and relevant circumstances which affects the banking operations.
53

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.
Installation of effective technical software as well as regular auditing of the accounts will benefit the banking professionals in
resolving the issues and mitigating the risksThus, 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.
5.2.3 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
54

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.
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
55

growth and profitability in the firm in terms of having soothing banking operations which will assists the workforce in making
qualitative efforts.
On review of literature it is identified that in order to provide more security to the mobile app users and net banking users there
must be 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 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
56

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
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
57

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.
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.
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Review of literature indicate that in order to maintain asset liability many banks start charging higher interest rate so that loss
caused by NPA can be covered. 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
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.
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
59

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
60

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.
5.2.4 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
61

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. It is identified that long term loan many times converted in to NPA. Such kind of things
affect bank balance sheet. 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
62

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 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.
5.3 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
6.0 Introduction
In this section of the report aim and objectives are prepared and on basis of analysis of facts conclusion section is prepared. Finally, at
end of the report recommendations section is prepared like seen in case of other dissertations. In this chapter aim, objectives and
findings of the study are given and explained in detail. While formulating conclusion in systematic way from varied sources
information is gathered and then its contribution to knowledge in terms of theory, methodology and practice is explained. Apart from
this, further research area is also given in the report in respect to interest rates and banks. The limitations of this study and
opportunities for future research are discussed in the subsequent sections. Personal experience that is observed during research process
is also explained.
6.1 Review of aim and objective
Aim
The aim is to analyze the impact of the variation in interest rate in commercial banks in Tajikistan after accession to the WTO.
A case study on commercial banks of Tajikistan
Objectives
To study the current condition of interest rate in commercial banks in Tajikistan.
To examine with theory, models and analysis in order to investigate the fluctuation of interest rate.
To analyse the impact of interest rate liberalisation in the financial system of Tajikistan.
To compare the interest rate and liberalisation of Tajikistan with its neighboring nations.
Through analysing data, it is concluded that interest rate on deposits is very low and interest rate charged on bank loan is high.
In order to evaluate fluctuation in the interest rate same across globe must be evaluated and by doing so fluctuation in the interest rate
can be evaluated in better way. The outcomes derived through this research will be discussed in a summarized way. It is consisting the
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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 Outcome of hypothesis tested
On testing of hypothesis, it is identified that there is no significant difference between the interest rate and revenue earned by the
banks. Means that with change in the interest rate significant change does not come in the revenue earned by the firm . 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 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.
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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
manifest in the economy and further to examine the contribution of financial liberalisation to economic growth.. 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
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of descriptive statistical tests and simple correlation. 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.
. 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 knowledge
6.3.1 Theoretical contribution
The interest rate fluctuations observed are time to time analysed from the perspectives of commercial banks in Tajikistan. The
operational activities of commercial banks are increased up to a major extent because of fluctuation in the interest rate in effective
manner. The 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 is 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.
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Present research study indicates that 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 seignories 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. This is the fact that was observed in the research study
carried earlier. Present research study goes one step ahead and indicate that low rate of interest on saving account motivate people
less to deposit cash in bank. Instead people prefer to make investment but many times they loss money in doing so. Thus, investment
reduced in the nation economy and due to this reason banks must increase interest rate so that people can be motivated to deposit more
money with commercial banks. 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 sector at low costs. The commercial banking
sector is adequate for it as it becomes difficult for extracting seignories from bond and equity market.
6.3.2 Empirical contribution
This research study indicates impact of interest rate in commercial banks on Tajikistan in multiple ways. Research study
indicate that interest rate greatly affects people saving rate and spending pattern. Thus, frequent changes need to be made in the
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monetary policy of the nation. In past many research studies are carried out on impact of interest rate on commercial banks in
Tajikistan like (Mushtaq and Siddiqui, 2017), (Khakimova, Solehzoda and Fasehzoda, 2018) and (Mogilevskii and Asadov, 2018 ).
Such kind of thing was not demonstrated in any other research paper published on same topic. In the research study relationship
between interest rate and revenue earned by the bank is identified which was earlier not tested in any research paper. Results indicate
that there is no significant difference between the variables.
6.3.3 Practical contribution
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.
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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. In relation to this, it can be said that banking firms will be able to enhance their 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.
6.4 Recommendations
. 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.
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:
1There 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.
2There 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.
3 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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4 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.
5There 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.
6 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.
7 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 markets
 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
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professionals in terms of protecting the confidential information from unlawful and misrepresented information stated in the
business.
6.5 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.
6.6 Further study for future research
, 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. 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.
6.7 Personal reflection
During research study I learn a lot about ways in which research must be carried out. First of all, I read varied articles and
journals and identify the main issues that are observed in the current time period. By considering that issues aim and objectives are
prepared. Thereafter on wide level I review journals and by considering them prepare literature review section. It is very tough task to
conduct literature review because varied authors said different things on same topic. Finally, I do data analysis by using statistical
method and prepare recommendation section. During research my data analysis skills get improved. Earlier I do not have knowledge
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of Chi square, correlation and regression analysis. While doing this project I try to understand these methods deeply. Hence, broad
understanding about techniques and their assumptions get developed and this helped me a lot in interpreting results in better way.
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Uzbekistan. The Journal of International Trade & Economic Development. 26(6). pp.677-692.
Khordehfrosh Dilmaghani, A. and Tehranchian, A. M., 2015. The Impact of Monetary Policies on the Exchange Rate: A GMM
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Approach. Journal of Business Ethics. 150(2). pp.485-503.
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Redivision of the banking market going on in Tajikistan. 2017. [Online]. Available through :<
https://www.asiaplus.tj/en/node/239410>.
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82

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?
85

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
86

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
87

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
88

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
89

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.
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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
91

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
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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.
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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
95

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
96

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
97

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.
98

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
99

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
100

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
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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
102

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
103

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
105

Theme 7: The type of interest rate practices
in your bank
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 8: The main feature of interbank
clearing and settlement system. They have
any influences as per changing lending
rates.
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.
Theme 9: The process for interest rates
determination in Tajikistan and
identification of rates which are
administratively set
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.
Theme 10: There are influences of the
governmental policies in making changes in
commercial bank lending rates
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.
Frequency analysis:
Statistics
106

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?
Does the
pension
schemes
award by
your bank
is
satisfactory
among
consumers?
Does your
bank have
any separate
risk
management
system?
Does your
bank offer
satisfactory
interest
rates
charges on
the
borrowed
money?
Did your
bank offer
term
deposits
with
respect to
make
appropriate
revenue?
Do you
believe that,
vulnerability
of a credit
union’s
financial
condition in
adverse
market
movements?
Does your
organization
have any
material
risk relevant
with interest
rate risk?
Does your
bank have
a formal
process in
mitigating
this
interest
rate risk?
N Valid 150 150 150 150 150 150 150 150 150 150 150
Missing 0 0 0 0 0 0 0 0 0 0 0
Mean 2.29 2.15 2.33 2.48 2.33 2.15 2.29 2.48 2.15 2.29 2.33
Median 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Mode 1 1 1 1 1 1 1 1 1 1 1
Std. Deviation 1.277 1.252 1.251 1.283 1.251 1.252 1.277 1.283 1.252 1.277 1.251
Variance 1.631 1.567 1.566 1.647 1.566 1.567 1.631 1.647 1.567 1.631 1.566
Range 4 4 4 4 4 4 4 4 4 4 4
Percentiles
25 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
50 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
75 3.00 3.00 3.00 4.00 3.00 3.00 3.00 4.00 3.00 3.00 3.00
Parameter Estimates
Dependent Variable: Does your bank facilitate the appropriate interest rate in deposits?
107

Parameter B Std.
Error
t Sig. 95%
Confidence
Interval
Partial
Eta
Squared
Noncent.
Parameter
Observed
Power
Lower
Bound
Upper
Bound
Intercept 2.800 .395 7.088 .000 2.019 3.581 .257 7.088 1.000
[Did your bank offer term deposits with respect to make
appropriate revenue =1] -.126 .436 -.289 .773 -.988 .735 .001 .289 .060
[Did your bank offer term deposits with respect to make
appropriate revenue = 2] -.653 .449 -
1.453 .148 -1.541 .235 .014 1.453 .303
[Did your bank offer term deposits with respect to make
appropriate revenue =3] -.644 .453 -
1.422 .157 -1.538 .251 .014 1.422 .293
[Did your bank offer term deposits with respect to make
appropriate revenue =4] -.979 .460 -
2.126 .035 -1.888 -.069 .030 2.126 .561
[Did your bank offer term deposits with respect to make
appropriate revenue =5] 0a . . . . . . . .
a. This parameter is set to zero because it is redundant.
b. Computed using alpha = .05
Descriptive Statistics
Mean Std. Deviation N
108

Does your bank facilitate the appropriate interest rate
in deposits? 2.29 1.277 150
Are the online operations performed by your bank
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 the pension schemes awarded by your bank are
satisfactory among consumers? 2.33 1.251 150
Does your bank have any separate risk management
system? 2.15 1.252 150
Does your bank offer satisfactory interest rate charges
on the borrowed money? 2.29 1.277 150
Did your bank offer term deposits with respect to
make appropriate revenue? 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
Does your organization have any material risk
relevant with interest rate risk? 2.29 1.277 150
Does your bank have a formal process in mitigating
this interest rate risk? 2.33 1.251 150
109

110