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NPL SYNDROME: ASSESSING THE IMPACT OF NON-PERFORMING LOANS ON BANK FINANCIAL STABILITY

📘 Volume 13 📄 Issue 3 📅 March 2026

👤 Authors

Suxrob Gaybulloev 1
1. Independent researcher at Kimyo International University in Tashkent, Finance, Tashkent, Uzbekistan

📄 Abstract

This article analyzes non-performing loans (NPLs) and their levels—factors that affect the financial stability of the banking system—through the concept of the “NPL Syndrome”. The study covers the determinants of NPL emergence, the mechanisms of their impact on the financial system, and proposals for their resolution. According to the IMF Financial Sector Assessment Program (FSAP) for the Uzbekistan banking system and official statistics for year-end 2025: GDP growth was 7.7%, inflation 7.3%, CAR 18.3%, LCR 207%, ROA 2.2%, NPL 3.0%, and the IFRS 9 Stage 3 indicator was 7.5%. The two-fold discrepancy between these figures indicates systemic weaknesses in asset quality assessment. Based on international experience—specifically from South Korea (KAMCO), Ireland (NAMA), and Spain (SAREB)—a four-pillar model for NPL management in Uzbekistan is proposed.

🏷️ Keywords

NPL Syndrome Non-Performing Loans Bank Stability Credit Risk Asset Quality IFRS 9 Asset Management Company Financial Restructuring Prudential Supervision.

📚 How to Cite:

Suxrob Gaybulloev , NPL SYNDROME: ASSESSING THE IMPACT OF NON-PERFORMING LOANS ON BANK FINANCIAL STABILITY , Volume 13 , Issue 3, March 2026, EPRA International Journal of Economics, Business and Management Studies (EBMS) ,

🔗 PDF URL

https://cdn.eprapublishing.org/article/202604-07-026885.pdf

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