The assets of the banking system of Uzbekistan amounted more than 37 trillion soums

The Central Bank of the Republic of Uzbekistan held an enlarged board meeting to discuss the outcomes of the activities of the banking system in the first half of this year and the implementation of the major directions and priorities set by the President Islam Karimov at the meeting of the Government of January 18, 2013, and the targets set by the banking system at a meeting of the Cabinet of Ministers on July 16 of this year.

The meeting was held by Chairman of the Central Bank of the Republic of Uzbekistan F.Mullajanov.

It was noted that the ongoing Central Bank's monetary policy in the first half of the year was aimed at meeting the targets of the macroeconomic indicators, decrees of the head of state to further  reform of the banking system, increasing its stability, achieving high international rating figures.

In the analyzed period has been held considerable work to further increase the capitalization of the banking system, strengthen its liquidity and financial stability.

As a result of the adopted effective indicators the banking system will not only meet the generally accepted international standards, but in some respects exceed them.

In particular, the current level of capital adequacy ratio of the banking system is 24.3%, which is 3 times exceeding the current minimum requirements of the Basel Committee on Banking Supervision (8%). This figure as at July 1, 2013 reached more than 6.3 trillion soums.

For the past several years, the level of current ratio exceeds 65%, which is 2 times higher than minimum level.

Assets of banks as compared to the same period in 2012 increased by 30.7% and amounted more than 37 trillion soums.

Implementation of effective banking supervision by international standards, monitoring of liquidity and asset quality have enabled local banks to receive positive ratings from leading international rating agencies.

Currently, all 29 commercial banks in the country have a rating of "stable" from such leading international rating companies as "Moody's», «Standard & Poors» and «Fitch ratings». This year, 23 banks have confirmed the assigned positive ratings for 2013.

Banks since the beginning of this year implemented a large-scale conservation measures the rate of growth of the economy and improve its competitiveness, modernization of basic sectors, accelerated technological renewal.

In particular, total amount of loans to the real sector of economy, increased by 31% and currently stands at more than 21.3 trillion soums.

The volume of loans for investment purposes as compared to the same period of the last year, increased by 1.3 times and, as of July 1 of the current year amounted more than 3.4 trillion soums.

Ongoing financial reorganization of insolvent enterprises and  improvement of management mechanisms, production modernization, technical and technological renewal allowed to fully restore production activities of 123 enterprises, which were  sold to new strategic investors. These enterprises exported goods worth $601.5 million.

In the period under review due to the decrees and decisions of the President to create a favorable business climate for small businesses in the country carried out large-scale events. As a result, the volume of loans to small businesses comparing to the same period of last year increased by 1.3 times and amounted to 3.7 trillion soums, also increased the volume of microcredit by 1.4 times, which amounted  775 billion soums.

Banks are paying serious attention to the involvement of young people, including graduates of professional colleges in entrepreneurship, financing their business projects. In particular, in the past, their allocated loan funds amounted to 54 billion soums, which is 2.3 times higher comparing to the same period of the last year.

Stable activity of domestic commercial banks, strengthening from year to year, credibility, as well as rising incomes have a solid foundation to raise funds of citizens and businesses in bank deposits.

Due to the growth of the resource base by increasing the level of capitalization of banks, along with the involvement of private capital into the sector trend of growth of deposits. In particular, this figure comparing to the same period of last year grew by 30.5% and currently stands at more than 23.1 trillion soums.

It was noted that from year to year, is increasing proportion of banking services, and in the analyzed period, the figure in the structure of financial services was 86.4%. This is the result of targeted measures taken to increase the volume and quality of banking services to the public and to businesses entities, consistent reform of the banking sector.

At the same time, were criticized activities of some commercial banks that do not make full use of internal resources to expand services provided and the confidence of clients.

The meeting identified priority tasks of mandatory implementation in the second half of the year.

In particular, heads of commercial banks entrusted unquestioningly carry out the priorities for 2013, certain by the head of state at a meeting of the Cabinet of Ministers on  January 18 of this year, the requirements of decrees and regulations to further reform and improve the stability of the banking sector increased their investment activity, higher levels of capitalization, further strengthen cooperation with the international rating agencies, consistent increase of long-term credit investments in the economy, improve the quality and types of services provided by banks.

On the discussed issues were taken appropriate decisions.

UzReport 30.07.2013