Improving The Strategy For The Formation And Management Of Green Loan Portfolios In Commercial Banks

Abstract

This study aims to examine strategies for improving the formation and management of green loan portfolios in commercial banks, focusing on the integration of environmental objectives with financial sustainability. The study employs a conceptual analytical approach to identify key challenges and strategic measures in green lending, particularly in the context of Uzbekistan. The analysis highlights several priority directions, including the development of a clear green lending policy, the establishment of transparent project eligibility criteria, the integration of environmental and climate-related risks into credit assessment, portfolio diversification, funding optimization, and the implementation of digital monitoring systems. The findings indicate that effective green loan portfolio management requires a comprehensive assessment of borrowers' creditworthiness, project financial viability, environmental compliance, and measurable sustainability outcomes. Furthermore, diversifying lending across economic sectors, borrower categories, and geographical areas can reduce concentration risks and strengthen portfolio resilience. The study also emphasizes the importance of mobilizing long-term funding, developing partnerships with international financial institutions, and utilizing digital technologies to improve data quality, transparency, and environmental performance monitoring. The proposed approach suggests that green loan portfolio development should prioritize not only lending volume but also credit quality, profitability, risk management, and verified environmental benefits. Integrating these elements can strengthen the sustainability of banking operations and support environmentally responsible economic development in Uzbekistan.