IMPROVING MODERN METHODS FOR ASSESSING ASSET QUALITY IN COMMERCIAL BANKS

Annotatsiya

This article examines modern approaches to assessing asset quality in commercial banks and develops methodological recommendations for improving their application. Particular at ention is paid to credit risk assessment, non-performing loans, expected credit losses, internal rating systems, stress testing, and forward - looking analytical models. The study analyzes the cur ent condition of the banking sector of Uzbekistan and identifies th e main factors af ecting asset quality. A methodological framework integrating traditional financial indicators with probability of default, loss given default, exposu re at default, macroeconomic variables, and scenario analysis is proposed. The results demonstrate that the transition from retrospective assessment toward dynamic and forward -looking approaches can improve the accuracy of credit risk identification and strengthen the financial stability of commercial banks.