By: Mamatov Bekhruz Azamat
Key words: bank, central bank, commercial bank, credit, rate, people’s bank, financing, savings, foreign currency, mortgage loan, world bank,
Abstract:
Currently, there are 31 commercial banks that are provided with all the conveniences of the banking system. These banks provide services such as lending, deposit operations, settlement and cash register. All of these banks are introducing new loans at low interest rates for the population by increasing convenience. Informs about the improvement of the banking system.
In order to further increase convenience in banks, the adoption of the new version of the Laws of the Republic of Uzbekistan “On Banks and Banking Activities” and “On the Central Bank of the Republic of Uzbekistan” in accordance with modern standards and principles of banking, facilities in the system.
In order to make the facilities of the bank equal to the world standard, loans denominated in foreign currency make up 48% of the total volume of loans, and deposits and funds in foreign currency make up 44% of the total volume of deposits. 36% of the total volume of loans issued by state-owned banks is accounted for by the 10 largest borrowers; due to the orientation of the business models of banks to serve corporate clients, non-bank financial organizations, and the slow development of innovation and information systems, financial low level of popularity increases convenience in the banking system.
Today, the banking system of the Republic of Uzbekistan consists of 31 commercial banks (hereinafter referred to as banks) that provide traditional banking services such as lending, deposit operations, settlement and cash.
Was established for specific purposes and tasks, actively involving participating enterprises and state development programs in financing at preferential interest rates. As a result, the share of preferential loans in the total portfolio of the banking system is more than 60 percent. The state has a dominant position in the banking sector – 13 out of 31 banks have state participation in their capital, and their capital is more than 87 percent of the total capital of the banking system.
Assets make up more than 85 percent of total assets. The active stage of banking sector reform, which began in 2017, was aimed at liberalizing the foreign exchange market, removing outdated restrictions on banking activities, freeing banks from uncharacteristic functions, and increasing the popularity of banking services.
In 2019, a number of qualitative changes were made in the banking system. In particular: the adoption of the laws of the Republic of Uzbekistan “On Banks and Banking Activities” and “On the Central Bank of the Republic of Uzbekistan” in a new version, which are in line with modern standards and principles of banking; Reform of financing mechanisms for investment projects with the participation of the Reconstruction and Development Fund of the Republic of Uzbekistan; abandonment of the practice of lending state programs at rates lower than the main rate of the Central Bank and transition of lending to market conditions from 2021; development of entrepreneurship within the framework of state target programs concentration of lending in 3 banks – AT Xalq Bank, Agrobank ATB and Mikrokreditbank ATB; organization of the mechanism of preferential financial support of entrepreneurial activity by the state through the State Fund for the Support of Entrepreneurial Activity; based on market principles introduction of a new procedure for providing housing to the population at the expense of mortgage loans; evaluation of prudential control mechanisms and procedures over the activities of commercial banks in cooperation with the World Bank from the point of view of their compliance with the principles of the Basel Committee.
Mamatov Bekhruz son of Azamat was born on May 3 , 2005 in the Shahrisabz district , Kashkadarya region of the Republic Uzbekistan. Nationality is Uzbek . Currently, he is a 1st-year student of the Tashkent Textile and Light Industry Institute.
Similar Posts by Mt Kenya Times:
- Mt Kenya Times ePAPER May 16-17, 2026
- Leaders call for unity and political tolerance at burial of Kanini Kega’s mother
- Xi, Trump visit Temple of Heaven
- Xi holds talks with Trump in Beijing
- TIFA: Ruto leads 2027 race as support for Broad-Based Government declines
Felix Njenga