of May 12, 2020 No. UP-5992
About the Strategy of reforming of bank system of the Republic of Uzbekistan for 2020 - 2025
During consecutive reforming of the financial sector number of measures as a result of which necessary legal conditions for conducting progressive banking business and strengthening of competitive environment in the sector are created is realized.
In particular, the updated laws of the Republic of Uzbekistan "Are adopted about the Central bank of the Republic of Uzbekistan", "About banks and banking activity", "About currency control" and "About payments and payment systems", conforming to international standards and creating attractive legal environment for foreign investments to the financial sphere.
At the same time the analysis of the current situation in the bank sphere shows availability of number of the system problems interfering development of banking sector according to economic transformations and requirements of society such as high share of presence of the state in banking sector, insufficient quality of management and risk management in banks with participation of the state, the low level of financial intermediation in economy.
Acceptance of additional measures for increase in availability of financial services is necessary, for expansion of presence of banks in regions and providing single range of services in all settlements.
The accelerated taking measures to widespread introduction in bank system of information technologies on the basis of modern service decisions, financial technologies is required, to providing up to standard to information security, and also decrease in influence of human factor when rendering financial services.
Proceeding from the tasks determined by the State program by strategy implementation of actions in five priority directions of development of the Republic of Uzbekistan in 2017 - 2021 in "Year of development of science, education and the digital economy" approved by the Presidential decree of the Republic of Uzbekistan of March 2, 2020 No. UP-5953, and also for the purpose of carrying out the cardinal transformation of banking sector directed to stimulation of private sector development, increase in investment appeal of banks, availability and quality of banking services:
1. Determine the main directions of reforming of banking sector in the Republic of Uzbekistan:
increase in efficiency of bank system by creation in the financial market of equal competitive conditions, crediting only on market basis, decrease in dependence of banks on the state resources, upgrades of bank servicing, creation of effective infrastructure and automation of activities of banks, and also step-by-step cancellation of non-core functions of banks;
ensuring financial stability of bank system by means of improvement of quality of credit portfolio and risk management, observance of moderate growth of amounts of crediting, carrying out the balanced macroeconomic policy, enhancement of corporate management and involvement of managers with the international practical experience, implementations of technology solutions for assessment of financial risks;
decrease in the state share in banking sector by complex transformation of commercial banks from shares of the state, implementation of modern standards of banking, information technologies and software products, implementation of the state block of shares of banks on competitive basis to the investors having proper experience and knowledge and also parallel reforming of commercial banks and companies from shares of the state;
increase in availability and quality of financial services by means of concentration of the state presence and acceptance of address measures on insufficiently served and vulnerable segments, widespread introduction of remote services for the population and small business, development of network of low-cost points of servicing, and also creating favorable conditions for formation and development of non-bank credit institutions as complementary part of single financial system of the republic.
The strategy of reforming of bank system of the Republic of Uzbekistan for 2020 - 2025 according to appendix No. 1;
"Road map" on reforming of bank system of the Republic of Uzbekistan according to appendix No. 2.
3. Establish Target indicators on strategy implementation of reforming of bank system of the Republic of Uzbekistan for 2020 - 2025 according to appendix No. 3, providing in particular:
increase in share of assets of banks without share of the state in the total amount of assets of bank system from the current 15 percent to 60 percent by 2025;
increase in share of obligations of banks to private sector in total amount of obligations from the current 28 percent to 70 percent by the end of 2025;
attraction by 2025 at least three strategic foreign investors having proper experience, knowledge and reputation in the capitals at least three banks from shares of the state;
increase in share of non-bank credit institutions in total amount of crediting with flowing percent 0,35 to 4 percent by 2025.
4. Agree with offers of the Ministry of Finance and Central bank of the Republic of Uzbekistan about:
implementation with assistance of the international financial institutions of step-by-step privatization of share of the state in AKIB "Ipoteka-bank", JSB Uzpromstroybank, JSB Usak, JSC Alokabank, JSB Kishlok kurilish bank and JSB Turonbank, having provided at the first stage their institutional transformation (activities transformation) and at the second stage - implementation of the state block of shares;
preserving share of the state in the authorized capital of JSC National Bank of Foreign Economic Activity, JSB Agrobank and JSB Mikrocreditbank for the purpose of population requirements satisfaction in financial services, widespread introduction of the mechanism of support of investment projects ("factory of projects"), ensuring regional availability of banking services during reforming of bank system;
consolidations of separate banks proceeding from normative requirements, and also economic feasibility of their reorganization according to the legislation based on diagnostics of their activities and assessment of financial condition.
5. Create Project office on transformation and privatization of commercial banks from shares of the state under the Ministry of Finance of the Republic of Uzbekistan within the approved number of staff of the ministry, having granted it the right:
involvement of the international consultants as advisers of processes of transformation and privatization of commercial banks;
negotiations and the conclusions of agreements with the international financial institutions and potential foreign investors concerning transformation and privatization of commercial banks.
Determine that the Project office is headed by the First Deputy Minister of Finance of the Republic of Uzbekistan.
6. To Central Bank and the Ministry of Finance of the Republic of Uzbekistan to take measures for carrying out no later than 2024 estimates of condition of the financial sector according to the program of the International Monetary Fund and World Bank of FSAP.
7. Forbid heads of the ministries, departments and public authorities on places intervention in activities of banks, including on management of the entrepreneurial risks connected with forming of credit portfolio and assets of banks.
To the Prosecutor General's Office of the Republic of Uzbekistan to strengthen supervision of execution of the legislation on banks and banking activity regarding non-admission of administrative intervention in activities of banks from state bodies.
7-1. Determine that the relevant structural divisions of the jurisdictional enterprises and the organizations providing activities of the Central bank on a grant basis are located in the territory and in buildings of the Central bank, and also its head departments on the Republic of Karakalpakstan, areas and the city of Tashkent.
8. To the Ministry of Economic Development and reducings poverty together with the Ministry of Finance of the Republic of Uzbekistan in two-month time to take measures for institutional strengthening of the State fund of support of business activity with inclusion in structure of Council for management of independent members of fund.
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