PROSPECTS OF USING CREDIT CARDS IN COMMERCIAL BANKS OF THE REPUBLIC OF UZBEKISTAN
Keywords:
credit card, retail credit, refinancing rate, credit risk, inflation, credit scoring, household income.Abstract
Access to consumer credit in the form of credit cards has grown rapidly, becoming one of the most widely held financial instruments by households in developed countries. Credit cards provide the convenience of cashless transactions, i.e. shopping via mobile devices and the Internet. Credit cards allow consumers to defer payment to a future date and plan for a specific day, and relieve the cost pressures associated with temporary liquidity shortages.
The development of competition in the market of retail credit services of the Republic of Uzbekistan requires the improvement of lending practices of individuals. In commercial banks, based on the needs of individuals, it is necessary to make quick decisions in the offer of retail credit products and in the lending process. It is for this reason that in the conditions of the unstable development of the financial market, banks face the issue of managing the quality of the portfolios formed and fundamentally changing the retail lending policy. Banks offer various loan products based on the needs of customers.
This article describes the prospects of providing retail credit services to individuals through credit cards by commercial banks and its development in Uzbekistan.
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