Loan Portfolio of Commercial Banks and Its Quality Improvement Mechanisms

In the context of increasing macroeconomic uncertainty and increasing credit activity of commercial banks, the issue of improving the quality of the loan portfolio and reducing the share of problem loans is becoming particularly urgent. This paper analyzes the reasons for the emergence of problem loans in the loan portfolio of commercial banks of the Republic of Uzbekistan, their impact on banking activities, and the scientific, theoretical and practical aspects of improving the quality of the loan portfolio. The study studied the dynamics of such indicators as the loan portfolio and problem loans of banks. Also, based on the experience of developed countries, scientific and practical proposals and recommendations were developed to improve the mechanisms for managing problem loans.