Improving Corporate Governance and Risk Management Systems in the Transformation Processes of State-Owned Banks

This article examines the improvement of corporate governance and risk management systems within the transformation processes of state-owned banks. The study focuses on the institutional and organizational challenges associated with the high level of state participation in the banking sector, including the concentration of lending in state-owned enterprises, the prevalence of directed and concessional lending, insufficient diversification of business models, and weaknesses in corporate governance. Particular attention is paid to the role of supervisory boards, risk appetite frameworks, internal control systems, transparency, accountability, and the professional independence of management bodies. The study analyzes recent indicators of state-owned banks in Uzbekistan and develops an integrated transformation framework based on four interrelated components: professional governance, proactive risk management, portfolio diversification, and performance accountability. The results demonstrate that banking transformation should not be limited to technological modernization or changes in ownership structure. Sustainable transformation requires the simultaneous development of corporate governance, risk management, business models, human capital, and organizational culture. The proposed framework can contribute to improving the efficiency, resilience, transparency, and competitiveness of state-owned banks