As 2025 draws to a close, the outlook in Uzbekistan’s banking sector is tilting positive: according to new statistics released by the Central Bank, the share of non-performing loans (NPL) in banks’ loan portfolios has dropped noticeably. As of December 1, the figure stood at 3.45%, compared with 4.27% over the same period last year. This was reported by upl.uzreports.
The regulator’s figures show that the improvement is driven not only by the expansion of total lending, but also by a real reduction in problem debt. During the reporting period, commercial banks’ total loan portfolio increased from 525.9 trillion soums to 595.3 trillion soums, while the volume of non-performing loans, on the contrary, fell from 22.45 trillion soums to 20.55 trillion soums.
Experts view the 0.82 percentage-point decline in NPLs as a sign of stronger borrower discipline and effective measures by banks to remove legacy risks from their balance sheets. The sector, it appears, is entering a stabilization phase after a period of active lending.
Against international benchmarks, the situation is also under control: in global practice, an NPL ratio in the 3–5% range is considered higher-risk but manageable. For emerging economies, including Uzbekistan, such levels are typical and usually do not require emergency regulatory measures.
The term NPL became widely known in the global economy after the Asian financial crisis of the late 1990s. At that time, in countries such as Thailand and Indonesia, the share of problem loans rose to 40–50%, paralyzing banking systems. Today’s level of around 3–5% in Uzbekistan indicates that risks are being managed.
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