Implementation of Ifrs 9 in Commercial Banks of Uzbekistan: Current Practices and Development Priorities

The adoption of IFRS 9 within Uzbekistan's commercial banking sector represents an important advancement in risk management and financial reporting practices. This study employs secondary statistical analysis and sector-level data to examine the key aspects of the transition of Uzbek commercial banks from the conventional incurred-loss approach to the forward-looking expected credit loss (ECL) framework required under IFRS 9. The findings indicate that the application of IFRS 9 may result in higher reported levels of non-performing loans (NPLs) compared with domestic regulatory measures, particularly among state-owned commercial banks, highlighting opportunities to further strengthen asset quality assessment and provisioning practices. Provisioning ratios have increased following the implementation of IFRS 9, although variations across banks and reporting periods indicate scope for the continued development of IT infrastructure, data integration, and regulatory guidance. The analysis suggests that IFRS 9 has contributed to greater transparency and more forward-looking recognition of credit risk, while its full potential can be further supported through technological and institutional development. Accordingly, the study recommends continued investment in IT and data infrastructure, targeted professional training, enhanced regulatory guidance, and stronger cooperation across the banking sector to facilitate consistent and effective IFRS 9 implementation. These findings provide practical guidance for policymakers, regulators, and banking executives seeking to strengthen financial stability, improve risk management practices, and support the further integration of Uzbekistan's banking sector with international financial reporting standards.