This study examines the role of commercial bank development and privatization in strengthening capitalmarket growth and financial system efficiency, with particular emphasis on the Republic of Uzbekistan. The researchanalyzes cross-country data for the period 2015–2022 to identify the relationship between banking sector depth andcapital market indicators such as market capitalization, IPO activity, and corporate bond issuance. The findings confirma positive correlation between banking sector development and capital market expansion. The study also highlightsinstitutional, regulatory, and structural factors affecting the privatization process in Uzbekistan. Based on empiricalevidence, policy recommendations are proposed to enhance regulatory frameworks, improve corporate governance,promote digital financial services, and attract strategic investors in order to strengthen financial system sustainability andmarket integration.