NEWS AND EVENTS
April 22, 2015
People\'s Bank of Uzbekistan intends to increase its authorized capital by 185 billion soums and bring it to 385 billion soums in 2015-2017
The dynamic development of the domestic banking system has been in progress. Targeted reforms help protecting the country from the negative effects and consequences of the ongoing global financial and economic crisis, as well as streamlining the activity of banks, expanding the loaning of the real economy, and drastic improvement of quality of banking and financial services.
The increased level of capitalization of banks deserves special mention. Over the past 13 years the total capital of banks has grown more than 43 times, and more than 4.4 times over the last six years. Today, the capital adequacy ratio of the banking system makes up 23.8%, which is three times higher than required by the Basel Committee on Banking Supervision (8%). As of January 1, 2015, this indicator has exceeded 6.9 trillion soums (currency rates of CB RU from 22.04.2015 1$= 2507.40 soums).
The People\'s Bank, with the most extensive network of branches in all the regions of the country, has been a front line player in the domestic banking system. As of March 31, 2015, the bank has 32 mini-banks and 1,332 additional offices in remote and inaccessible areas. The bank\'s assets exceed 3 trillion soums, the deposit base – 2.42 trillion soums, and the credit portfolio – 1.65 trillion soums.
The bank\'s shares are distributed among shareholders in proportion to their shares, i.e. the Ministry of Finance - 51%, and the Central Bank - 49%. The bank’s authorized capital is built by the bank’s own profit, tax benefits, state budget, as well as part of the profit and equity of the Central Bank.
According to experts, such a policy ensures reliable and guaranteed protection of household deposits through the increase in the level of capitalization in line with universally accepted international norms and standards. The increase in the capital would also provide an opportunity to expand loaning to the real economy, small businesses and individuals.
(Source: «Uzbekistan Today» newspaper)