Nilufar Sharipova
PhD, Tashkent Financial Institute
senior lecturer of the Department “Banking Account and Audit”
Tashkent, Uzbekistan. email: [email protected]
ORCID: 0000-0002-4892-9922
Abstract:Assessment of financial stability of banks is important for the stability of the banking system. Indicators such as capital adequacy, credit risk assessment, liquidity assessment, market risk, profit contribute to timely identification of risks of individual credit institutions, prevention of negative consequences in the banking system. One of the main directions of the strategy of reforming the banking system of the Republic of Uzbekistan is the issue of increasing the financial stability of banks, in this direction, the improvement of corporate governance in banks using international standards and best practices, ensuring moderate growth in lending and improving the quality of loans provided to the portfolio, to develop banking control and risk management systems. At different times, researchers have proposed different approaches that determine the financial stability of a commercial bank. The main features of this concept are the current financial position of the bank, formed on the basis of changes in all financial and non-financial indicators, as well as its ability to act on the basis of a strategy developed in an ambiguous macroeconomic environment[1]. The methodology for assessing the financial stability of credit institutions has been developed and is used for various purposes by various economic entities. These include: the financial stability of the bank is assessed by the regulator for monitoring purposes, by customers of the credit institution, as well as by counterparties-banks when issuing interbank loans, rating agencies, as well as for research purposes. This article deals with the financial stability of commercial banks in the modern economy and methods of its assessment using available indicators. The main attention is paid to the existing rating evaluation system, the method based on coefficient analysis, the method based on statistical models, as well as macroprudential methods, the essence of such evaluation methods is revealed. The analysis of the financial stability of individual commercial banks was carried out using the CAMELS rating system assessment methodology, which is widely used in global banking practice, and the analysis data were studied comparatively. At the end of the article, the relevant conclusions and proposals are formulated.
Keywords: financial stability of banks, return on assets, return on capital, the share of problem loans in the total volume of loans issued.