Publication Details
Abstract
This article develops an applied framework for improving the efficiency of financing business entities through bank credit in Uzbekistan. The study argues that credit efficiency should not be identified with the growth of loan volumes alone. A bank loan is efficient when it reaches viable firms on appropriate terms, is processed at reasonable administrative cost, is priced in accordance with risk, is repaid sustainably, and generates measurable business outcomes such as investment, turnover, employment, productivity and formalization. The empirical part uses official Central Bank of Uzbekistan data for 2024–2026, regional loan statistics as of 1 July 2026, and recent World Bank and IFC evidence on access to finance. Total bank loans increased from UZS 471.4 trillion at the beginning of 2024 to UZS 604.0 trillion at the beginning of 2026, while loans classified for developing entrepreneurship rose from UZS 16.4 trillion to UZS 40.5 trillion. At the same time, access remains uneven and corporate lending is geographically concentrated, with Tashkent city accounting for more than half of loans to legal entities in July 2026. To connect expansion with quality, the paper proposes a Business Credit Financing Efficiency Index (BCFEI) combining access, affordability and maturity, process efficiency, risk-adjusted portfolio quality, productive allocation and digital maturity. It also proposes a digital enterprise credit platform that integrates bank cash-flow data, e-invoices, credit bureau records, tax and registry information, and sector risk indicators. The framework provides a practical basis for commercial banks and policymakers to shift from collateral-dominated lending toward cash-flow-based, data-driven and outcome-oriented financing of business entities.