ACCOUNTING AND AUDIT OF SHORT-TERM CREDIT OPERATIONS IN COMMERCIAL BANKS
DOI:
https://doi.org/10.55640/Keywords:
short-term loans, consumer credit, overdraft, credit line, accounting, internal audit, loan portfolio, interest rate, non-performing loans, provision.Abstract
This article examines the accounting mechanisms for short-term lending operations in commercial banks and their internal audit. Using the example of Uzbekistan's banking sector, it analyzes types of short-term loans – consumer loans, overdrafts, and credit lines – and recent changes in their structure. The study reviews the practices of bookkeeping entries for disbursement and repayment of short-term loans, interest accrual, and provisioning. The methodology of internal audit in banks for inspecting short-term credit operations, risk assessment, and control is also described. In the results section, a table and graph are used to analyze statistical data from 2018–2023 on the dynamics of the short-term loan portfolio, the decline of its share, growth of loan volumes, changes in interest rates, and non-performing loan indicators. The issues identified by internal audits and the measures to address them are discussed. The conclusion offers recommendations to improve short-term loan accounting and internal audit in banks.
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