Capital adequacy level of Uzbek banks increases
Tashkent, Uzbekistan, Nov. 27
By Demir Azizov- Trend:
The capital adequacy level of the banking system of Uzbekistan currently amounts to 23.6 percent, which is almost 2.5 times higher than the current requirements of international standards, Deputy Chairman of the Central Bank of Uzbekistan Akhadbek Khaydarov said Nov.26.
He made the remarks at the international banking forum in Tashkent.
He said that the level of current liquidity of banks in the country is 64.5 percent, which is 2 times higher than the minimum standards adopted in the world practice.
Khaydarov said that the requirements for Uzbek banks in terms of capital within the framework of the introduction of the standards of the Basel Committee on Banking Supervision (Basel III) is comparable with Western ones, and even exceed a number of parameters.
"Starting from January 1, 2016, the minimum value of the minimum adequacy of regulatory capital will be increased from 10 percent to 11.5 percent, while the regulatory capital adequacy level will be increased from 5 percent to 7 percent," said the representative of the Central Bank.
Khaydarov also said that the share of problem loans of Uzbek banks is less than 1 percent of the total loans.
"Despite the financial crisis, Uzbek banks manage to maintain a low level of NPL (non-performing loans) in its loan portfolio," he said.
Currently, there are 26 commercial banks, including 3 state ones, 5 banks with the participation of foreign capital, 7 private banks and 11 joint-stock ones in the banking system of Uzbekistan.
In January-September 2015, total assets of commercial banks of Uzbekistan increased by 10.5 percent compared to 2014, to 62.1 trillion soums, and the total loan portfolio of banks of the republic increased by 14.1 percent, up to 39.7 trillion soums. The total volume of deposits attracted by the banks of the republic, as of early October amounted to 31.8 trillion soums compared to 28.6 trillion soums in early 2015 (a 11.2 percent increase).