Uzbekistan, Tashkent, Aug. 25 / Trend D.Azizov /
Uzbekistan will develop a program on further reforming and improving the stability of the financial and banking system in 2011-2015 until Oct.1, a source in the governmental circles told Trend.
The country set up a special group including officials of Ministries of Finance and Economy, the Reconstruction and Development Fund, Central and other banks of Uzbekistan to develop a program. The team will be led by First Deputy Prime Minister Rustam Azimov.
The teams should develop improved approaches to assess the activities of commercial banks and financial-banking system as a whole in the light of the criteria adopted in accordance with the international standards and, above all, the criteria and standards used by leading rating agencies Fitch Ratings, Moody's, Standard & Poor's.
It will also set specific targets for individual banks and the banking system for their further reform and progress to a higher level of performance indicators adopted throughout the world.
Another important component of the program will be further increase of the level of capitalization of banks, providing them with financial stability and liquidity in accordance with international standards set by the Basel Committee.
Particular attention will be paid to growth and improvement of the quality of the loan portfolio of commercial banks through improving project appraisal, continuous monitoring of credit quality and risk assessment, as well as measures to prevent the formation of problematic credit debt.
Earlier, Uzbek President Islam Karimov issued a decree on "Measures of further increase of financial stability and strengthening of investment activity of banking system" to approve an action program on further capitalization of and strengthening of commercial banks' activities in 2010-2012.
The document envisages increase of the aggregate capital of commercial banks by no less than 20 percent a year, including in 2010, to $490 billion sums through additional issue of shares.
The program also defined that this year banks must ensure increase of aggregate long-term deposits by 1.6 trillion sums by applying new types of bank services. Further, deposit investments must comprise no less than 20 percent a year.
Under the program, this year the banks should increase through internal sources the amount of aggregate loan investment, directed at strategically important investment projects on upgrade, technical and technological rearmament of production, by 3.2 trillion sums.
It is planned to up lending in small and private business in 2010 by no less than 1.4 times and micro-lending by 1.3 times.
Do you have any feedback? Contact our journalist at: [email protected]