Vol. 11 No. 2 (2025): MOLIYA VA BANKISHI
Issue Articles

THE IMPACT OF GREEN FINANCE PRACTICES ON THE DYNAMICS OF NON-PERFORMING LOANS IN UZBEKISTAN: AN ANALYTICAL APPROACH TOWARDS SUSTAINABLE FINANCIAL DEVELOPMENT

pdf (Oʻzbekcha)
  • Shoxruxbek Qudratov
Shoxruxbek Qudratov
Bank moliya akademiyasi

Published 2025-06-27

Keywords

  • Yashil moliya,
  • Muammoli kreditlar (NPL),
  • Bank kredit xavfi,
  • Panel regressiya modeli,
  • ESG mezonlari,
  • Kredit portfeli,
  • Moliyaviy barqarorlik
    • ...More
    Less

How to Cite

Qudratov, S. (2025). THE IMPACT OF GREEN FINANCE PRACTICES ON THE DYNAMICS OF NON-PERFORMING LOANS IN UZBEKISTAN: AN ANALYTICAL APPROACH TOWARDS SUSTAINABLE FINANCIAL DEVELOPMENT . FINANCE AND BANKING, 11(2), 44–51. Retrieved from https://journal.bfa.uz/index.php/bfaj/article/view/326

Abstract

This study provides an empirical analysis of the relationship between green finance and credit risk in the banking sector of Uzbekistan. Using panel regression models and quarterly data from 35 commercial banks covering the period 2020–2024, the research reveals that banks participating in green projects exhibit lower levels of non-performing loans (NPL). The interaction term LOAN × GreenInvest was found to be negative and statistically significant, indicating that green financing further reduces credit risk in banks with larger loan portfolios. Random Effects (RE) model estimates were refined using Feasible Generalized Least Squares (FGLS) to address heteroskedasticity, autocorrelation, and cross-sectional dependence. State-owned banks showed higher NPL ratios, while liquidity risk (LDR) had a positive impact on NPLs. Economic growth (GDPg) was identified as a mitigating factor for credit risk. These findings confirm the importance of green finance as a tool for enhancing financial stability in the banking sector. Based on the results, policy recommendations include strengthening regulatory frameworks based on ESG criteria, introducing separate reporting requirements for green loans, and improving technical capacity within banks to assess climate-related risks in Uzbekistan

pdf (Oʻzbekcha)

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