Publication Details
Abstract
This study examines the specific features of lending to individuals in Uzbekistan, provides a comprehensive practical analysis of its current state, and explores key directions for further development. In recent years, retail lending has become one of the most rapidly growing segments of the banking sector in Uzbekistan, driven by increasing household income, expanding financial inclusion, and digital transformation in banking services. The research analyzes the structure and dynamics of loans issued to individuals, including consumer loans, mortgage loans, and microloans, as well as evaluates key indicators such as loan growth rates, asset quality, and non-performing loan ratios.
The paper also identifies major challenges in the sector, including credit risk concentration, insufficient creditworthiness assessment mechanisms, and the impact of macroeconomic factors such as inflation and interest rate fluctuations. Special attention is given to the regulatory framework and the role of reforms aimed at strengthening the stability and efficiency of the banking system.
Based on the analysis, the study proposes several recommendations for improving retail lending practices in Uzbekistan. These include enhancing risk management systems, expanding the use of digital technologies and credit scoring models, improving financial literacy among the population, and ensuring a balanced approach between credit growth and financial stability. The findings of the research can contribute to the development of more sustainable and efficient lending practices in the country’s banking sector.