This article analyzes non-performing loans (NPLs) and their levels—factors that affect the financial stability of the banking system—through the concept of the “NPL Syndrome”. The study covers the determinants of NPL emergence, the mechanisms of their impact on the financial system, and proposals for their resolution. According to the IMF Financial Sector Assessment Program (FSAP) for the Uzbekistan banking system and official statistics for year-end 2025: GDP growth was 7.7%, inflation 7.3%, CAR 18.3%, LCR 207%, ROA 2.2%, NPL 3.0%, and the IFRS 9 Stage 3 indicator was 7.5%. The two-fold discrepancy between these figures indicates systemic weaknesses in asset quality assessment. Based on international experience—specifically from South Korea (KAMCO), Ireland (NAMA), and Spain (SAREB)—a four-pillar model for NPL management in Uzbekistan is proposed.