Volume 11 - Volume 11
Ways to Increase the Loan Income of Commercial Banks
Abstract
Relevance of the topic. Since loans have the highest share in the structure of assets in universal
commercial banks, income from loans plays an important role in shaping their income base. In turn,
the change in the level of return on loans is directly related to changes in the quality of the bank's loan
portfolio. Therefore, the analysis of the quality of the loan portfolio allows to identify problems
associated with increasing the profitability of loans.
The purpose of the study is to develop scientific proposals aimed at increasing the profitability of loans
of commercial banks of the Republic of Uzbekistan.
Results. The article substantiates ways to ensure a stable level of interest income from loans in the
gross profit of commercial banks; the expediency of increasing the profitability of loans by ensuring
that the level of reserve allowances for loan losses is at the level generally recognized in international
banking practice.
Practical significance. The proposals developed in the course of the research can be used in the
development of measures aimed at increasing the profitability of loans of commercial banks.
Research limitation. The low level of diversification of the loan portfolio of large commercial banks of
the Republic of Uzbekistan hinders the reduction of credit risk in their activities.
Paper Details
PaperID: 2021
Author's Name: Idiev Nodir Fozilovich
Volume: Volume 11
Issues: Volume 11
Keywords: Commercial Bank, Asset, Loan, Loan Portfolio, Gross Income, Interest Income, Reserve, Spread, Margin, Interest Rate.
Year: 2021
Month: May
Pages: 1422-1439