This report investigates the impact of interest rate variations in commercial banks in Tajikistan following its accession to the WTO. The study begins with an introduction outlining the background of financial liberalisation and its significance, setting the stage for an analysis of the current conditions of interest rates in Tajikistan's commercial banks. It aims to examine the fluctuations of interest rates through theoretical models and analysis, assessing the impact of interest rate liberalisation on the country's financial system. Furthermore, the report includes a comparative analysis of Tajikistan's interest rate liberalisation with that of neighboring countries. The research explores the research questions regarding the current concerns, relative factors behind fluctuations, and the impact of interest rate liberalisation. The hypothesis suggests a positive impact on the banking sector's performance. The study justifies its importance by highlighting the characteristics of developing countries' financial sectors, financial repression, and the role of interest rate liberalisation as a key policy prescription. The report delves into the implications of these factors, including the effects on banks, debtors, and the overall economy, and also includes recommendations for guiding banks to achieve interest rate stability.
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