THE IMPORTANCE OF EFFECTIVE ORGANIZATION OF CREDIT OPERATIONS IN COMMERCIAL BANKS

Аннотация

This article explores the significance of the effective organization of credit operations in commercial banks and addresses the methodological issues essential for ensuring their successful and sustainable functioning. It also examines the management of credit risks, the proper structuring of the lending process, and methods for improving its efficiency. In addition, the article provides conclusions and recommendations aimed at enhancing the effectiveness of credit operations withincommercial banks. Keywords:credit operations, credit portfolio, credit risk, credit process, problem loans, Introduction. Currently, ensuring the efficiency of credit operations in commercial banks is of critical importance for their successful and sustainable functioning. Primarily, the proper organization and acceleration of credit processes can be achieved through the effective use of modern information technologies. In this context, it is essential to implement effective methods of credit risk management and creditworthiness assessment. Additionally, applying an individual approach to each client and identifying their specific needs plays a vital role in enhancing service quality. Improving the efficiency of credit operations in commercial banks remains a pressing issuetoday. As inall sectors, competition among banks is increasing year by year. Attracting more clients and gaining their trust requires the delivery of high-quality banking services. Moreover, the proper management of credit risks is crucial for maintaining the financial stability of banks. This includes monitoring credit quality and accurately assessing the repayment capacity of borrowers. In particular, within the framework of the "Strategy for Reforming the Banking System of the Republic of Uzbekistan for 2020–2025," one of the key goals is to increase the share of the private sector in the banking system from 15% to 60%, as well as to accelerate the transformation of state-owned banks. In the process of implementing this strategy, commercial banks are paying increased attention to the automation and optimization of credit processes in order to improve financial analysis and long-term development strategies. Banks must quickly adapt to these changes and align their activities with the new requirements. By enhancing the efficiency of credit operations, banks can strengthen theircompetitiveness, improve customerservice, and ensure theirlong-term stability. Analysis and Results. Credit operations hold strategic importance for commercial banks, as they serve as the primary source of income. The efficiency of these operations directly affects the financial standing and competitiveness of the bank. Regular monitoring of each issued loan and the prevention of non-performing loans contribute to assessing the importance and effectiveness of credit operations. The significance of credit operations in commercial banks is characterized by their role as a revenue source, their contribution to economicgrowth, and theirfunction in expanding thecustomer base. Specifically, reviewing the key indicators of banking activity for the first quarter of 2024 reveals a slowdown in the growth rate of total banking system assets. While this growth ranged between 20–30% during 2022-2023, as of March 1, 2024, it amounted to 15.4%. The total assets of the banking system reached 648.6 trillion UZS, and liabilities amounted to 549.6 trillion UZS. State-owned banks accounted for 67.4% of total assets, 70.1% of the credit page448 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue06,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai portfolio (331.2 trillion UZS), and 50.7% of total deposits (120.6 trillion UZS), while the remaining share belonged to 25 private banks. For every 100 UZS in loans issued, state-owned banks attracted 36 UZS in deposits (down from 39 UZS the previous year), whereas private banks attracted 83UZS (down from 93UZS).Since thebeginning oftheyear, thegrowth rate of bank deposits has also slowed. While in the first quarter of the previous year bank deposits grew by 42%, during the same period of the current year the figure stood at 13%. Furthermore, foreign currency deposits declined from 38% to 29% compared to the same period of the previous year. There has been an increase in the activity of individuals using banking services. The share of credit portfolios belonging to individuals rose from 26.5% in the first quarter of theprevious year to32.1% during thereporting period an increase of nearly 6percentage points. Consequently, the share of legal entities decreased from 73.5% to 67.9%. Moreover, the share of individual deposit balances increased by 6 percentage points to 36.1%, while the share of corporate deposit balances decreased from 70% to 63.9%. In order to assess whether the indicators of commercial banks comply with regulations, it is necessary to consider several key p