Abstract
This article examines the issues of credit portfolio quality and risk management, improving asset quality, and maintaining a balanced growth rate in lending volumes, supported by statistical analysis. The discussion highlights the importance of enhancing credit portfolio and risk management quality, as outlined in the 2020-2025 banking sector reform strategy of the Republic of Uzbekistan. Additionally, an analysis of non-performing loans (NPLs) in commercial banks as of April 1, 2025, is presented. The paper provides conclusions and recommendations on managing credit portfolios and distressed loans, as well as ensuring the efficiency of credit issuance and recovery systems in this sector.