Trends and Patterns of Accumulation of Non-Performing Loans in the Banking Sector of Uzbekistan

This article provides a comprehensive overview of the banking sector in Uzbekistan, with a particular focus on the trend and patterns of non-performing loans (NPLs) accumulation. The data in the article offer insights into the share of NPLs in total loans across banks over several periods, underscoring the importance of assessing asset quality and risk management practices of banks in order to support policy decisions and investment strategies. The analysis reveals that banks generally exhibit a slightly higher ratio of NPLs to total loans compared to the pre-pandemic period, highlighting the fluctuation of NPL ratios over time, particularly during the pandemic. Furthermore, it provides a breakdown of NPL accumulation by sector, indicating the industrial sector as the largest contributor to NPLs, followed by the agricultural sector. Especially, the mean of quarterly NPL ratios for Uzbek banks from 2017 to 2023 is discussed, revealing an increase in the NPL ratios in 2021 as compared to the previous year. The data in the article describe the relationship between quarterly outstanding loans and NPLs for banks over the same period. The analysis particularly focuses on NPL accumulation trends and sector-specific contributions, which are of significant concern. The study's findings are of paramount importance for stakeholders, policymakers, and investors, as they offer crucial insights into the credit risk, asset quality, and performance of banks in Uzbekistan.