Ways to Resolve non-Performing Loans in Commercial Banks

Abstract

The thesis analyses the dynamics and structure of non-performing loans (NPLs) in commercial banks of Uzbekistan in 2022-2026 and substantiates ways of resolving them. Central Bank data show that the NPL ratio declined from 5.2 to 3.0 percent, yet problem loans rose again to 22.94 trillion soums by mid-2026, remain higher in banks with state participation and are only half covered by specific provisions. Proposals are developed on bank-level NPL reduction strategies, viability-based restructuring, separate workout units, faster collateral enforcement, the development of a secondary market for distressed assets and a clear write-off policy.