TRENDS IN UZBEKISTAN’S BANKING SECTOR: LIQUIDITY, NON- PERFORMING LOANS, AND DEPOSIT GROWTH

Аннотация

Abstract: This study analyses Uzbekistan’s banking sector performance from 2017 through 2024, focusing on three key indicators: liquidity buffers, non-performing loans (NPLs), and deposit trends. Using official Central Bank and World Bank data, we conduct a descriptive time-series analysis, comparing state-owned versus private banks and households versus enterprises. We find that banks have maintained ample liquidity, with high Quality Liquid Assets and Liquidity Coverage Ratios well above regulatory minima, reflecting compliance with Basel III standards. Credit expanded rapidly, but credit quality weakened: NPLs rose sharply from historically low levels to around 4–6% of loans, especially in private banks. Deposits grew robustly (about nine- fold in UZS terms), driven mainly by corporate and government entities. These trends suggest a strengthening funding base but also emerging risks (especially rising private- sector NPLs). Policy measures should focus on strengthening risk management, bank governance, and financial inclusion to mobilize household savings.