Work

Does Foreign Ownership Improve the Credit Risk Management?

Year: 2025

Type: article

Abstract: This paper examines the main determinants of non-performing loans (NPL) in commercial banks of Uzbekistan using dynamic panel approach. The research includes the quarterly banking data for the period 2020 – 2023 and investigates whether foreign ownership improves the credit risk management while controlling for other bank-specific and macroeconomic factors. According to the findings, there is a negative association between being foreign-owned and NPL. The econometric results indicate that on average NPL rate is 0.12% lower in foreign banks compared to local ones, while holding other variables constant. These findings suggest implementing the best practices of foreign-owned banks in the field of credit risk management to the local commercial banks.

Source: Zenodo (CERN European Organization for Nuclear Research)

DOI: 10.5281/zenodo.14833179

Author: Olmas Kuchkarovich Isakov

Language: English

Topic: Banking stability, regulation, efficiency

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W6967763726

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