THE IMPACT OF CREDIT RISKS ON NONPERFORMING LOANS
Maxkamov Xursanbek Maxmudovich
Independent Researcher at Andijan Institute of Agriculture and Agrotechnologies, Lecturer at the Department of Economics and Finance at Andijan Branch of Kokand University
Keywords: commercial banks, credit risk, non-performing loans, financial stability, risk management, monitoring, collateral
Abstract
Relevance: In ensuring the financial stability of commercial banks, effectively managing credit risks and minimizing the volume of non-performing loans (NPLs) is one of the most critical tasks. Methods: Systematic analysis, classification, and logical generalization methods were used during the research. Results: The types of credit risks (debtor, collateral, interest rate, currency, sector, and monitoring risks) and the mechanism of their gradual impact on the formation of non-performing loans were identified. Conclusion: Improving early detection of credit risks and enhancing monitoring systems serves to reduce the real financial losses of banks
References
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2. Regulation of the Central Bank of the Republic of Uzbekistan "On Requirements for Credit Risk Management in Commercial Banks".
3. Azizov, Sh. U. (2022). Improving the quality of the loan portfolio and risk management in commercial banks. Journal of Finance and Banking, 4(2), 45-52.
4. Rose, P. S., & Hudgins, S. C. (2013). Bank Management & Financial Services (9th ed.). McGraw-Hill Education.
5. Saunders, A., & Cornett, M. M. (2018). Financial Institutions Management: A Risk Management Approach. McGraw-Hill Education.
