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Uzbekistan’s banks close their branches

Finance Materials 10 December 2019 18:34 (UTC +04:00)
Uzbekistan’s banks close their branches

BAKU, Azerbaijan, Dec. 10

By Fakhri Vakilov-Trend:

The number of credit organizations and bank divisions in Uzbekistan as of October 1 decreased compared to the same date a year ago from 8640 to 8061, Trend reports citing Uzbekistan’s Central Bank.

The number of branches of commercial banks decreased from 896 to 847, mini-banks - from 1134 to 960, operating cash desks located outside banks - from 2281 to 1908.

In addition, there was a slight decrease in the number of currency exchange offices - from 948 to 943, as well as mobile cash registers - 2132 to 2115.

The decrease in the number of branches is associated with the creation of the network of “banking services offices” in all regions. In necessary cases, banks have the right to review the structure of the existing network of branches.

“Banks are looking towards profit from branches. Now many branches have become unprofitable, it has become unprofitable for banks to maintain them. Instead of large branches with 50-150 employees each, compact offices are being created with 5-10 employees who provide the same services,” said Nusratulla Fazilov, director of the Central Bank Licensing and Permission Procedures Department.

Fazilov added that this is not about reducing the availability of banking products, but about reducing the operating costs of banks. "Instead of one large branch, two or three compact banking services offices are being created," he noted.

According to the Central Bank, as of December 1, 2019, commercial banks opened 237 banking services. Their creation was provided for by a presidential decree of October 24. On October 31, a decree of the Central Bank approved the organization of such offices.

Offices can provide the following services: opening deposit accounts, accepting deposits; making payments and international money transfers; currency exchange; issuance of consumer loans and microloans; other services based on the requirements of the service area.

The total number of commercial banks over the year has grown from 28 to 30, banks with a state share - from 11 to 13, microcredit organizations - from 36 to 51, pawnshops - from 53 to 59, international payment transfer points - from 1132 to 1148.

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