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Uzbekistan reveals banks with high performance in financial intermediation

Finance Materials 11 February 2021 16:02 (UTC +04:00)

BAKU, Azerbaijan, Feb. 11

By Klavdiya Romakayeva - Trend:

The Center for Economic Research and Reforms (CERR) has prepared the activity index of Uzbekistan’s bank for the 4Q2020, Trend reports with reference to the CERR.

It is reported that CERR itself developed the index for 31 commercial banks of the country. The index is updated quarterly in order to regularly assess the share of the private sector in banking assets, as well as the effectiveness of reforms and transformation processes in the banking sector.

The CERR notes that when calculating the index, the indicators of banks were used according to financial intermediation, financial availability, capital adequacy, asset quality, management efficiency, profitability and liquidity.

As of December 1, 2020, the assets of the banking system of Uzbekistan amounted to 366.1 trillion soums ($35 billion), liabilities - 307.8 trillion soums ($29.3 billion) and capital - 58.4 trillion soums ($5.5 billion). Currently, 55,274 people work in the banking system.

The banks were divided into two groups - large and small banks. A rating was compiled separately for each of these groups. Thus, among 17 large banks, Kapitalbank is in the lead, Hamkorbank took the second place, Alokabank is third.

The first place for Kapitalbank was ensured by high results in financial intermediation, asset quality and liquidity. In particular, the ratio of the bank's term deposits to the total amount of loans amounted to 85 percent.

In addition, the share of funds received from other banks and financial institutions amounts to 3 percent, and the share of funds received from the state is 0.5 percent in the structure of the bank's liabilities, which is one of the lowest indicators.

Hamkorbank is recognized as the leader in financial inclusion due to the fact that the number of legal entities and individuals receiving loans for one bank branch is relatively large. Hamkor Bank is also one of the five largest banks in terms of profitability and liquidity.

Aloqabank showed high performance in financial intermediation, capital adequacy and asset quality. If the share of term deposits of the bank in the total volume of loans accounted for 58 percent, which is higher than that of other state-owned banks, then the share of deposits and loans from other banks and financial institutions in total liabilities amounted to 23 percent, and the share of borrowings from the state was 11 percent, which lower than the average indicators of the banking system.

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Follow the author on Twitter: @romakayeva

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