MECHANISMS OF COMMERCIAL BANKS FOR REDUCING PROBLEMATIC LOANS

Аннотация

The article considers the issues of increasing the efficiency of banks with overdue debts. The most effective methods of reducing the risk of problem loans, eliminating the factors that cause them, and improving the loan portfolio are identified. Also, an analysis of existing problem loans in the loan portfolio was conducted and practical proposals were madefor theirelimination. Keywords:bank, bank, loan, lending, borrower, overdue debt, problem loan, loan monitoring, non-performing loan. Introduction. Today, banking is one of the dynamically developing systems in the economy of the Republic of Uzbekistan. However, such rapid growth threatens the quality of assets (including loans) and the ability of banks to manage credit risk, the issue of improving themethods ofworking with problematic loansof commercial banks remains relevant. President Of The Republic Of Uzbekistan Sh. M.Mirziyoev said that” it is necessary to further expand the potential of banks, banks, borrowers, companies and associations in the repayment of problematic loans, and the heads of regions will work cooperatively in their collection." The bank's goal in risk management is to ensure the return of all assets and narrow theboundaries of possiblefluctuations. Usually, when it comes to risk, experts first of all refer to credit risk, that is, the non- repayment of theloanand the interest accrued toit.To this level of risk, thecustomermust. General information about sources of literature; literature review With the formation of market relations in the economy, the need arose to carry out research work on problematic loans in commercial banks. Lavrushina, Yu.S. , Nurzat O.A., Lykova N.M., Kovanyov A.A., Studied the analysis of problematic loans in the banking system using various methods of foreign researchers associated with the names Yashin MV, Slavyansky AV, Kuznitsov. A number of International Studies in the field of problem credit management are devoted to choosing the optimal strategy for problem credit management, these studies arebased onHerring R.Dj., isreflected in thework ofWestern researchers such as Greppet. On credit risk in commercial banks and problems associated with themanagement of troubled loans and their reduction in the number.M.Karaliyev , U.A.To ' xtaboev, KA. Analyzed byMukhamedzhanov et al . Researcher S.V.Kuznitsov (2008) notes in his scientific work: – a problem loan is a loan in which the borrower cannot fully fulfill his obligations in accordance with contracts and agreements with the bank, therefore, expired payments on the loan obligations of the page788 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue05,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai borrower are at risk of partial or complete loss for the bank [1]. Yu.Yu. Platonov and S.E.Zaychenko (2011) believes that an increase in the number of problematic loans can lead to a deterioration in the quality of the bank's credit portfolio , additional costs, low profit or loss, the need arises to organize the management of problematic assets using the most effectivetools. [2]. According to Slavyansky (2009), a "problem loan" is a loan in which the borrower cannot fulfill the terms of the loan agreement in order to pay off the loan on time and in full, as well as there are sufficient grounds for non - fulfillment by the borrower in the bank. [3]. O.A.A scientific article by Yusupova (2016) argues that overdue debt is not only a severe financial or unforeseen situation, but also a distraction of the client, as a result of which he forgets to make timely payments when he has money and opportunity. [4]. As a rule, in such cases, overdue debt is calculated by the credit Inspector through an SMS notification or text messagesent to theborrower fora maximumof fivetoseven working days. V.V.A scientific article by Mazurin (2022) argues that an expired loan does not allow the borrower to pay off the debt in full and on time under the current contract . However, he argues that the concept of problematic loans is mainly due to the high rate of financial losses for the bank due to the borrower's improper treatment of the loan, a situation often associated with a deterioration in the financial situation [5]. According to the Basel Committee, a problematic loan is a loan in which the borrower's obligations to the bank are significantly violated, the borrower's financial situation has significantly deteriorated, and the qualityof collateral has significantly decreased oreven lost[6]. Taking into account the above, we can trace the relevance of the scientific work carried out by these researchers on the example of problematic loans in thecommercial banks ofourcountry. Indeed, in commercial banks, existing expired and problematic loans not only negatively affect the qualityof assets, but also increasetherisk of non-repayment of loans. Methodology. This article analyzes the current