The impact of economic policy on non-performing loans: the case of Uzbekistan

Jalalov Mashkhurbek Gaybullo Ugli

GREEN ECONOMY AND DEVELOPMENT, 2025, vol. 3, issue 8

Abstract: This study investigates the impact of economic policy variables on non-performing loans (NPLs) in Uzbekistan’sbanking sector using panel data regression analysis. The empirical results reveal that a tighter monetary policy andstronger financial supervision significantly reduce NPLs, while expansionary fiscal policy, exchange rate volatility, andhigh credit-to-deposit ratios contribute to their increase. Additionally, macroeconomic stability indicators such as GDPgrowth and bank-specific factors like return on assets (ROA) and bank size are found to play a crucial role in determiningNPL dynamics. These findings suggest that coordinated macroeconomic and regulatory policies are essential for ensuringfinancial stability and improving credit quality in the banking sector. Policy recommendations emphasize the need forprudent monetary and fiscal policies, enhanced risk management, and stronger supervisory frameworks to mitigate creditrisks and support sustainable financial development in Uzbekistan

Keywords: non-performing loans; monetary policy; fiscal policy; financial supervision; economic growth; exchange rate volatility; banking sector; Uzbekistan; credit risk; financial stability (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://yashil-iqtisodiyot-taraqqiyot.uz/journal/index.php/GED/article/view/6630 Abstract page (text/html)
https://yashil-iqtisodiyot-taraqqiyot.uz/journal/i ... e/download/6630/4884 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:teu:ged000:v:3:y:2025:i:8:id:6630

DOI: 10.5281/zenodo.16777866

Access Statistics for this article

More articles in GREEN ECONOMY AND DEVELOPMENT from "Ma'rifat-Print-Media" LLC, Tashkent State University of Economics
Bibliographic data for series maintained by Xayrulla ().