NEWS AND EVENTS
June 25, 2015
S & P Noted the Positive Changes in Uzbekistan Banking Sector
The consistent measures spearheaded under the leadership of President Islam Karimov to reform the banking system serve as a robust backbone for uplifting the economic might of our country, consolidating the financial stability of commercial banks, perfecting their activities at the level of international standards. Uzbekistan’s achievements in this sphere have been receiving recognition of prominent international financial institutions.
That was the topic of discussion at the conference organized by the Central Bank of the Republic of Uzbekistan in cooperation with the international rating agency Standard & Poor’s, informs Uzbekistan National News Agency. The event aimed at deliberating on issues related to granting international ratings to the commercial banks of Uzbekistan. The occasion was attended by heads of Central and commercial banks, representatives of international and local companies specializing in auditing credit organizations.
During the conference, Standard & Poor’s experts organized a presentation outlining the analysis of the criteria in grating the rating, the assessment of creditworthiness, experience, recommendations for the introduction of standards of the Basel Committee on banking oversight, Basel III, and their influence on the rating of banks.
“President Islam Karimov’s Resolution on Measures to Further Elevate the Financial Sustainability of Commercial Banks and the Promote Their Resource Base, signed 6 May 2015, plays an important role in the introduction of Basel III standards,” says Anastasia Turdieva, deputy director for financial institutions of the international rating agency Standard & Poor’s. “We have always evaluated the capitalization of Uzbekistan’s banking system as stable, because the growth in assets that boost the incomes of commercial banks has been rather high. In addition, major investment projects undertaken by the state with the participation of banks have a positive impact on the capitalization.”
In conditions when notable decline in economic growth rates are evident in some countries, and the reduction of ratings of some advanced nations and major financial institutions, the banking system of Uzbekistan is estimated as “stable”. This is another result of the reforms carried out in the field.
The constant support displayed in our country to the banking system, the expertise garnered by the Central Bank of Uzbekistan in the exchange of credit information and the conduct of transactions in collaterals promote growth in rating assessments. In particular, specific practical measures aimed at bolstering the financial stability of the system have ensured the growth in the banks’ capital more than twofold in the last five years and by 25 percent over the last year. Today, the capital adequacy ratio is 24 percent, three times the international standards.
The event served to exchange views on issues such as consistent reforms conducted by the Central Bank and maintenance of effective banking supervision, asset quality, diversification of the credit portfolio, ongoing monitoring of indicators of capital adequacy and liquidity.
(Source: IA «Uzbekistan Today»)