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PRESS OF UZBEKISTAN
August 25, 2016
ALL COMMERCIAL BANKS OF UZBEKISTAN NEGOTIATE WITH INTERNATIONAL FINANCIAL INSTITUTIONS ON SELLING AT LEAST 15% OF THE SHARE CAPITAL TO FOREIGN INVESTORS
According to the Central Bank, these measures have marked the beginning of the next stage of privatization of domestic banks. In the near future, this process should ensure the further improvement of the quality of management, the culture of bank services, and increase the involvement and responsibility of the shareholders to the banking business.

At the same time, foreign investors stimulate the country\'s commercial banks to enhance the reliability and performance by improving asset quality. The Central Bank’s monitoring in this direction is bearing fruit: the share of problem loans in investments of commercial banks is less than 1%, far below the international standards. At the same time, the establishment of the Credit Bureau and Pledge Register has been playing an important role in this process. The capacity of these agencies in obtaining information about the borrowers is an excellent mechanism for commercial banks to promptly check on customer activities, and thereby minimize credit risks.

The maintenance of capital adequacy and quality of the banking system assets has been sustaining the dynamics of economic growth in the country, turning banks into active participants in ongoing structural changes, a financial pillar for commissioning backbone facilities, promoting entrepreneurship and expansion of social and economic infrastructure.

The establishment of activity of commercial banks on the basis of international standards and norms, and timely bringing of accounting and financial statements in conformity with generally accepted requirements allowed Uzbekistan to rank among the CIS’s first to introduce new recommendations of the Basel Committee on Banking Supervision. This, in turn, has enhanced requirements to capital adequacy, paved the way for further regulations on ensuring liquidity, and streamlined the classification of bank asset quality and risk management system. The whole work has mitigated the impact of global economic crisis on the national economy.

The current stable financial condition of commercial banks and their resilience to rapid changes in the global economy is largely dependent on their capital, and the level of capitalization. Therefore, the Central Bank has been attaching special importance to this issue. Over the past five years, the total capital of banks has increased by 2.4 times, and by 23.3% in 2015. Last year, the capitalization rate was 23.6%, which is three times higher than the parameters set by the Basel Committee.

(Source: «Uzbekistan Today» newspaper)


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