CURRENT STATUS OF ALLOCATING LOANS TO INDIVIDUALS AND PROSPECTS FOR THE IMPLEMENTATION OF BEHAVIORAL ECONOMICS IN THE LENDING PROCESS

Juraeva Sevara Zakirovna,

PhD, chief specialist

of the credit department of “Trustbank” PSJB

s.jurayeva@trustbank.uz

ORCID  0000-0002-5308-379X

Abstract. One of the main tasks is to further develop the banking system, which is the main link of the economy, and especially to increase the weight of credit operations of our country’s banks. The efficient banking system of countries operates by introducing innovations in banks, providing new types of services, and improving existing asset and passive operations. In our republic, commercial banks currently allocate loans to customers taking into account credit history and salary income. However, it is known from foreign experience that this method of lending has a number of disadvantages and requires attracting customers on a limited scale.

            In recent years, behavioral economics has been widely used in the practice of globally developed countries, especially in their banking and financial systems. In today’s world where digital technologies are advancing, the decision-making process is becoming more and more difficult day by day among easy, fast and limitless choices. As a result, it is impossible for banks to determine customer behavior with complete accuracy. That is why it is becoming increasingly important to study how and why people make financial decisions in the banking system. Because the role of the factor of behavioral economy in forming the demand for the offered products, increasing the loan portfolio and preventing problematic loans is incomparable. Based on this, it is appropriate to study the behavior of customers in the process of lending to individuals and to determine the factors affecting it, as well as to study the influence of mental and physical behavior on the choice of customers and credit ability.

            In this article, the crediting system of natural persons, the concept of credit scoring, the rules of the lending procedure of the banks of our republic and the methods of determining the solvency are mentioned. Also, the foreign experience of lending practice based on the factors of behavioral economy, views of scientific researchers and scientific works are given. Based on these, the importance and prospects of introducing the factor of behavioral economy in the banks and credit organizations of our republic are highlighted.

         Keywords. credit, debt load, solvency, loan portfolio, problem loans, behavioral economics, consumer loans, car loans, solvency, credit scoring, credit history

 

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