TRENDS IN UZBEKISTAN’S BANKING SECTOR: LIQUIDITY, NON- PERFORMING LOANS, AND DEPOSIT GROWTH
Keywords:
Keywords: Banking sector; liquidity coverage ratio; non-performing loans; deposit mobilization; Uzbekistan; financial stability.Abstract
Abstract: This study analyses Uzbekistan’s banking sector performance from
2017 through 2024, focusing on three key indicators: liquidity buffers, non-performing
loans (NPLs), and deposit trends. Using official Central Bank and World Bank data,
we conduct a descriptive time-series analysis, comparing state-owned versus private
banks and households versus enterprises. We find that banks have maintained ample
liquidity, with high Quality Liquid Assets and Liquidity Coverage Ratios well above
regulatory minima, reflecting compliance with Basel III standards. Credit expanded
rapidly, but credit quality weakened: NPLs rose sharply from historically low levels to
around 4–6% of loans, especially in private banks. Deposits grew robustly (about nine-
fold in UZS terms), driven mainly by corporate and government entities. These trends
suggest a strengthening funding base but also emerging risks (especially rising private-
sector NPLs). Policy measures should focus on strengthening risk management, bank
governance, and financial inclusion to mobilize household savings.
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