"METHODS OF CREDIT RISK MANAGEMENT IN ENSURING THE FINANCIAL STABILITY OF COMMERCIAL BANKS"

ABSTRACT. This article investigates the structured mechanisms of credit risk management and evaluates their direct, quantifiable impact on the overarching financial stability of commercial banks in Uzbekistan amidst ongoing macroeconomic adjustments. The main objective of the research is to analyze contemporary asset quality trends, particularly non-performing loan (NPL) dynamics, and to formulate strategic, forward-looking recommendations that reinforce banking liquidity and regulatory capital adequacy.

Employing methods of systemic financial analysis, prudential ratio evaluations, and qualitative scenario stress-testing based on aggregate banking sector data provided by the Central Bank of Uzbekistan, the study identifies a tightening capital adequacy margin across the sector. The empirical findings reveal that while the national banking system maintains a resilient baseline, localized credit shocks within the retail micro-lending and cyclical corporate sectors significantly jeopardize the capital buffers of mid-sized commercial banks.

To mitigate these vulnerabilities, the article concludes with actionable recommendations, emphasizing the transition to predictive cash-flow-based underwriting models, the utilization of counter-cyclical capital cushions, and the expansion of secondary debt markets for non-performing asset resolution.