WAYS TO ELIMINATEPROBLEMS IN THE PROCESS OF CREDIT RISK ASSESSMENT AND MANAGEMENT

Abstract This article analyzes the legal and institutional foundations of credit risk management in commercial banks, as well as the dynamics of non-performing loans (NPLs) in the banking sector of Uzbekistan. The study examines theoretical approaches of economists such as Milton Friedman, Robert Solow, and V. Usoskin in connection with the implementation of modern financial regulatory mechanisms in Uzbekistan, including ICAAP, Basel III standards, and stress-testing practices. Based on statistical data for the period 2020–2024, the research identifies the causes of the growth of non-performing loans in state-owned and private banks, highlighting macroeconomic factors and changes in credit policy. The author proposes several scientific recommendations aimed at strengthening the stability of the banking system, including the full digitalization of risk assessment processes, expansion of hedging instruments, and improvement of risk-based supervisory mechanisms.