Sharipova Nilufar Khikmatullayevna
Associate Professor, Department of Banking Accounting and Audit,
Tashkent State University of Economics, PhD
Email: sharipova_nilufar@tsue.uz
ORCID: 0000-0002-4892-9922
Abstract. The article examines the role of the mortgage letter as an institutional element in the development of Uzbekistan’s mortgage lending system and its impact on strengthening the financial stability of the banking sector. The mortgage letter is considered as an independent legal instrument that not only records the creditor’s rights and claims, but also creates the foundation for the standardization of mortgage obligations. This, in turn, increases operational transparency, facilitates risk assessment, and supports the establishment of unified approaches to mortgage asset management. Special attention is devoted to the potential of the mortgage letter in the context of forming a mechanism for the secondary circulation of mortgage assets. Although the mortgage letter is not classified as a security under national legislation, its legal nature enables it to serve as a basis for developing refinancing systems, transferring claims, and structuring mortgage pools. The functioning of the mortgage letter enhances the liquidity of banks’ portfolios by creating opportunities to attract long-term funding, optimize balance sheet structure, and redistribute credit risk. The article also highlights the advantages of implementing the electronic mortgage letter as an instrument of digital transformation in the mortgage market. Transitioning to an electronic format accelerates operations, reduces administrative costs, and minimizes the risks of fraud or document loss. International experience demonstrates that digital mortgage instruments form the foundation for the development of securitization mechanisms and covered bonds, which may become relevant for Uzbekistan as regulatory frameworks continue to evolve. Thus, the development of the mortgage letter as an institution is viewed as a key factor in strengthening mortgage infrastructure, enhancing the resilience of the banking sector, and creating long-term sources of housing finance.
Keywords: Mortgage letter, mortgage lending, financial stability of banks, secondary market of assets, mortgage-backed securities, comparative legal analysis, international experience.