Development of Mechanisms for Ensuring Asset Quality and Credit Portfolio Stability in Commercial Banks

This article examines the main directions for improving asset quality and ensuring the stability of loan portfolios in commercial banks. Particular attention is given to credit risk, non-performing loans, portfolio concentration, borrower assessment, collateral quality, loan monitoring, provisioning, and capital adequacy. The study analyzes the current condition of the banking sector of Uzbekistan using official statistical data from the Central Bank of the Republic of Uzbekistan. As of June 1, 2026, the total assets of the banking sector reached 984.4 trillion UZS, while the total loan portfolio amounted to 636.0 trillion UZS and deposits reached 460.6 trillion UZS. The analysis demonstrates that the rapid expansion of lending increases the importance of strengthening credit-risk management and maintaining adequate capital buffers. The study proposes an integrated approach based on improved borrower assessment, sectoral diversification, early-warning systems, portfolio stress testing, effective collateral management, data-driven credit scoring, and enhanced recovery mechanisms. The results indicate that loan portfolio stability should be considered not only in terms of reducing non-performing loans but also through maintaining an appropriate balance between profitability, liquidity, concentration risk, and capital adequacy.