ENVIRONMENTAL RISK MANAGEMENT AND ITS EFFECT ON CREDIT PORTFOLIO STABILITY IN COMMERCIAL BANKS
DOI:
https://doi.org/10.60078/3060-4842-2025-vol2-iss6-pp615-624Abstract
This research examines the influence of environmental risk management (ERM) on the credit portfolio stability of commercial banks in Uzbekistan, utilising secondary data from sustainability reports, regulatory publications, and international financial institutions. The results show that banks with more advanced ERM frameworks, which include environmental screening, green lending, and sustainability governance, have lower non-performing loan (NPL) ratios and better asset quality. On the other hand, banks that don’t use ERM as much are still more vulnerable to environmental and credit risks. The study finds that integrating environmental risks into the banking system in Uzbekistan is necessary to make it more financially stable and in line with global standards for sustainable finance
Keywords:
environmental risk management credit portfolio stability green finance non-performing loans sustainable banking UzbekistanReferences
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