Maxmudov Rahimjon Hamid o‘g‘li
independent researcher TSUE
ORCID: 0009-0003-9374-9423
JELClassification: G21 H21
Abstract. Management of non-performing loans poses great challenges to commercial banks, which affects their financial stability and overall efficiency. In order to systematically carry out the activities of working with problem loans, it is appropriate to classify the problem loans according to the main directions, such as: term, quality, supply, resource source, and the entity that makes the decision to grant the loan. Classification of problem loans according to the above directions will help to properly and effectively plan work to eliminate them. This article provides a brief description of the main problems faced by commercial banks in dealing with problem loans and suggests effective strategies for mitigating these problems. Among the main problems in the practice of working with problem loans are insufficient basis for risk assessment, ineffectiveness of loan monitoring mechanisms and shortcomings in the process of their resolution. Commercial banks often find it difficult to properly assess the creditworthiness of borrowers, which leads to an increase in NPLs. In general, effective management of problem loans is crucial for the stable operation of commercial banks. By addressing underlying issues through improved risk assessment and improved loan monitoring, banks can mitigate the negative impact of non-performing loans on financial stability and ensure sound risk management practices.
Key words: Problem loans, risk management, credit monitoring, NPL, diversification, credit policy.