Characteristics of the credit portfolio and their impact on the formation of non-performing Loans
Keywords:
Commercial banks, credit portfolio, non-performing loans (NPL), asset structure, credit risk, Central Bank of Uzbekistan, loan quality, banking sector.Abstract
The article analyzes the dynamics of the credit portfolio of commercial banks in Uzbekistan and the share of non-performing loans (NPLs) over the period 2022–2024. Based on official data from the Central Bank of the Republic of Uzbekistan, the composition of banks’ assets and the trends in credit allocation are examined. The research highlights that lending has become a priority area of banking activity, as evidenced by the growing share of loans in the asset structure. At the same time, despite the overall growth in the credit portfolio, the ratio of non-performing loans has shown a downward trend, indicating an improvement in loan quality and risk management. The study also identifies differences in performance across individual banks, with some institutions demonstrating high NPL ratios, while others have significantly improved portfolio quality. Conclusions are drawn regarding the strengthening role of credit intermediation and the importance of effective credit risk management in the development of the banking sector.
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