The aggregate capital of commercial banks in the first quarter of 2012 rose by 24.4% and exceeded 5.6 trillion soums (official exchange rate for 07.04.12 1USD =1859,07 UZS)

Central Bank of Uzbekistan has summed up the banking system for the first quarter of 2012. Experts say the monetary policy in the reporting period was aimed to meet the macroeconomic goals set for the current year, to further reform and improve the stability of the banking system and achieve high international rating indicators and address the measures identified by the anti-crisis program for 2009-2012.

Thus, in the first three months of the year the banks were working on enhancing the liquidity of the banking system and increasing its stability. The aggregate capital of commercial banks over the same period last year increased by 24.4% and exceeded 5.6 trillion soums.

Also, close attention was paid to further increasing the capitalization of commercial banks, provided a substantial increase in the level of capital adequacy ratio of the banking system in accordance with international standards. Total assets of banks as compared to the same period last year grew 29% to $29.5 trillion soums. As a result of taken measures, leading international credit rating agencies, including Fitch Ratings, Moody’s and Standard & Poor’s, assigned stable ratings to 23 commercial banks of the republic.

In this period, commercial banks held large-scale projects aimed at improving the competitiveness of the economy, accelerated development of new businesses and manufacturing industries based on innovative technologies. The total amount of loans directed to the manufacturing sector of the economy grew by 32% and as of today reached 17.1 trillion soums. The volume of loans earmarked for investment purposes, compared to the same period last year, increased 1.5 times and as of April 1 this year amounted to 1.4 trillion soums.

As part of the national program of the Year of Family, the volume of loans issued to small businesses increased 1.4 times and amounted to 1.1 trillion soums. The volume of micro-loans also increased 1.5 times and exceeded 238 billion soums.

The main vectors of the banking system development in the future, which, according to local financiers and bankers, are able to bring it to a new level are further increasing the level of capitalization, strengthening confidence of the public and foreign investors, increase in the share of long-term investment in the economy, as well as the introduction of modern systems of performance evaluation based on indicators, standards and criteria used by leading rating agencies.

In addition, special attention this year will be given to creating the most favorable business environment for the further development of small business and entrepreneurship, growth in loans earmarked for small businesses and entrepreneurship, primarily for investment purposes, formation of start-up capital, expansion of microfinance services. (Source: “Uzbekistan Today” newspaper)