Total capital of Uzbek banks in the first half of 2012 has exceeded 5.7 trillion soums (official exchange rate 1 USD=1904,90 UZS). The Central Bank of Uzbekistan held an extended meeting of the board to discuss the performance of the banking system in the first half of the year. The monetary policy conducted by the bank was aimed to ensure predicted macroeconomic performance, to further reform the banking system, increase its stability, achieve high international rating indicators, as well as to meet the tasks defined in the anti-crisis program for 2009-2012.

In the reporting period, the bank took extensive efforts to further improve the liquidity of the banking system and bolster its financial stability. As a result, the total capital of banks increased by 24.2% over the same period last year and amounted to more than 5.7 trillion soums.

Experts estimate that the efforts taken to increase the capitalization of banks have given good results. At the moment, capital adequacy ratio of the banking system significantly exceeds the rates set by international standards. Assets of banks as compared to the same period in 2011 increased by 30.4% and amounted to about 32.4 trillion soums.

Currently, 26 commercial banks in the country received high ratings with stable outlook from such leading international rating companies like Moody’s, Standard & Poor’s and Fitch Ratings.

Banks from the beginning of this year have implemented wide ranging measures to improve the competitiveness of the economy, ensure accelerated development of productive industries and new high-tech enterprises. In particular, the total amount of credits directed to the manufacturing sector of the economy grew by 30.2% and now amounts to more than 18.2 trillion soums.

The volume of loans issued for investment purposes compared to the same period last year increased by 30% and as of July 1 this year totaled about 2.7 trillion soums.

Ongoing measures for financial rehabilitation of insolvent enterprises and improvement of governance arrangements, modernization of production facilities their technological renewal allowed 166 enterprises and 157 bankrupt enterprises transferred on the balance of commercial banks to fully restore their activity. Of these, 113 were sold to strategic investors.

These enterprises produced more than 1.4 trillion soums worth of goods, including more than $410.6 million for export.

The volume of loans provided to small businesses over the same period last year increased 1.4 times and amounted to 2.9 trillion soums. The amount of micro-loans also increased 1.4 times, to 558.4 billion soums. Thanks to the measures taken to expand the resource base by further increasing the level of bank capitalization, accompanied by attracting private capital into the sector, banks show growth in deposits. In particular, the figure grew by 30.5% over the same period last year and now amounts to more than 20 trillion soums. (Source: Uzbekistan Today newspaper)