Standard & Poor's: The increase in consumer loans in Uzbekistan poses heightened risks.

According to Standard and Poor’s, the measures implemented by the regulator starting in 2023 have successfully curbed the rapid growth of retail lending, reducing its rate to 20% in 2024, compared to approximately 50% in previous years.

However, the aggressive expansion of lending, increased competition—including the active entry of foreign players—and the still-developing risk management culture will pose significant challenges to the asset quality of rapidly growing banks, the agency's experts added.

State banks continue to dominate the sector, controlling around 70% of total banking assets. Meanwhile, the ambitious privatization program demands considerable time and organizational resources. To become attractive to foreign investors, state banks will need to undergo transformation and improve key performance indicators.

Standard and Poor’s notes that in the next two years, the banking system will face a number of serious challenges, including persistent low financial accessibility and limited household incomes.

According to the Central Bank of Uzbekistan, as of January 1, 2025, the credit portfolio of all commercial banks in the country amounted to 533.12 trillion sums, with the share of non-performing loans in the total portfolio reaching 4%.