CREDIT PORTFOLIO DIVERSIFICATION AND CREDIT RISK MANAGEMENT IN COMMERCIAL BANKS: MODERN CHALLENGES AND IMPROVEMENT DIRECTIONS

Abstract

Credit operations represent one of the most important areas of commercial banks’ activities and play a crucial role in financing economic development. The efficiency and sustainability of lending activities largely depend on the availability of sufficient financial resources, the level of capitalization, liquidity position, and profitability of banks. Therefore, ensuring resource adequacy has become one of the key prerequisites for expanding credit operations while maintaining financial stability. This study examines the issues of resource adequacy for improving credit operations in commercial banks. Based on statistical data from the Central Bank of the Republic of Uzbekistan, the research analyzes the dynamics of capital adequacy, liquidity indicators, profitability measures, and the financial capacity of the banking sector. The findings demonstrate that the strengthening of regulatory capital, improvement of liquidity positions, and growth in profitability indicators have created favorable conditions for expanding lending activities and supporting the real sector of the economy. However, further improvement of credit operations requires the diversification of funding sources, expansion of the deposit base, enhancement of long-term financing mechanisms, and improvement of resource management efficiency.