MANAGEMENT AND DIVERSIFICATION OF THE LOAN PORTFOLIO IN COMMERCIAL BANKS

Abstract

At a time when the interest in loans is increasing in the economy of Uzbekistan, the issue of analyzing credit risks and studying their role in the efficiency of banks is becoming more urgent. The results of the research show a non-linear growth of risks in bank lending related to the main attributes of lending: loan volume, term and interest rate. Creating an optimized risk-reducing approach to loan portfolio management is an urgent and practical issue. The purpose of this article is to confirm the need to increase the diversity of the loan portfolio and reduce risks, and to develop a new loan portfolio management system. This article used the statistical data of the Central Bank of the Republic of Uzbekistan and the Statistics Committee, referred to system analysis, theoretical approaches to management, statistical processing and operational research. The article presents a loan portfolio management method that combines quantitative and qualitative methods of risk assessment, which allows you to control the portfolio, as well as make informed decisions on granting or denying credit based on established risk limits. A portfolio structure optimization model has also been developed to achieve a better balance between short-term and long-term loans under different credit policies and to maximize portfolio profitability taking credit risk into account. The application of the proposed management mechanism and model in the activity of banks gave positive results in increasing the profitability and competitiveness of credit organizations.