How important is retail banking for Uzbek economy? (Exclusive)

Business Materials 16 July 2018 20:16 (UTC +04:00)

Baku, Azerbaijan, July 16

By Fikret Dolukhanov – Trend:

At current stage of the banking sector’s development in Uzbekistan, retail banking will make it possible to increase consumption volumes, improve living standards, economy and business climate, Deputy Chairman of the Board of Uzbek Orient Finance private joint-stock commercial bank (PJSCB) Ilham Tursunov told Trend.

He said that the legitimization of the free circulation of currency in Uzbekistan serves as a good example.

“This is a very important factor that makes the market transparent for investors and open to individuals,” Tursunov said. “We see a number of directions, qualitative changes in which will allow banks to reach a new level of customer service. For example, the availability of classical credit services for individuals - credit cards, non-purpose loans in cash, car loans, mortgage - will help develop both the banking sector itself and stimulate domestic production and consumption.”

He emphasized that the availability of services for customers, the ease of obtaining them, transparency of the process and the proper management of risks by the banks themselves play an important role in this.

“In 2017, major changes occurred in the policy of the Central Bank of Uzbekistan, which makes it possible to look optimistically at the future of the retail market and its growth,” Tursunov said. “This will stimulate the development and introduction of new technologies and tools, changing the existing and emerging of new approaches to doing business, and, as a result, stimulation of the entire economy is taking place.”

Earlier, Tursunov also told Trend that liberalization of the Uzbek currency market, strengthening of economic activity and the increase of the volume and speed of money turnover in the banking system positively affect production growth rate in the country.

On June 13, 2018, the international rating agency S&P Global Ratings confirmed the long-term and short-term credit ratings of the issuer of the Uzbek Orient Finance PJSCB at the level of “B-/B” with the “stable” forecast.


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