An Analytical Study of Optimized Financing Decisions for Investment Projects in Commercial Banks

In the context of ongoing banking sector reforms in Uzbekistan and the increasing role of commercial banks in financing investment projects, improving the quality and efficiency of financing decisions has become a critical issue. Traditional approaches to investment project financing often fail to adequately balance profitability and credit risk, leading to suboptimal capital allocation and elevated risk exposure. This study aims to develop and substantiate an optimization-based framework for financing investment projects in commercial banks, taking into account risk-adjusted performance and regulatory constraints. The study employs a quantitative empirical approach based on financial ratio analysis, credit risk assessment, and analytical optimization modeling. The empirical sample includes commercial banks actively involved in investment project financing, and the analysis compares traditional financing decisions with optimized alternatives. The results demonstrate that optimized financing decisions generate higher risk-adjusted returns, lower expected losses, and improved capital utilization efficiency compared to conventional approaches. Sensitivity analysis confirms the robustness of optimized outcomes under changes in key risk parameters, while highlighting the importance of accurate risk estimation. The findings contribute to the literature on bank financing and decision optimization by providing country-specific evidence from an emerging banking system. Practically, the proposed framework can be applied by commercial banks to enhance the efficiency and sustainability of investment project financing decisions.