THE IMPACT OF PROBLEM LOANS IN ENSURING FINANCIAL STABILITY IN THE BANKING SYSTEM

In order to ensure financial stability in the activities of banks, as a prudential measure, much attention is paid to improving the quality of the banking system's credit portfolio and reducing the volume of problem loans in it. In order to minimize the negative impact of expected risks on the capital and liquidity of banks, the activities of banks are constantly analyzed based on control indicators developed with the assistance of World Bank experts and IMF financial stability indicators, stress tests are conducted in various scenarios, the Central Bank's capital adequacy calculation methodology is brought into line with the standards of the Basel Committee, and financial stability can be achieved in the banking system by reducing problem loans. An increase in problem loans in the banking system has a negative impact on ensuring financial stability.