TASHKENT, Uzbekistan, March 8. The Central Bank of Uzbekistan plans to allow microfinance banks (a new type of credit organization) to operate, Trend reports.
This was announced by Central Bank deputy chairman Abrorkhuja Turdaliyev at an event organized by the Fitch rating agency on March 6.
Abrorkhuja Turdaliyev said that the Central Bank is developing a draft law on the creation of microfinance banks, which will be submitted to the Cabinet of Ministers by April. Microfinance banks would serve as an intermediate link between banks and microfinance companies.
This will require the establishment of regional microfinance banks in Uzbekistan. Microfinance organizations will be able to transform into microfinance banks when they receive a license from the Central Bank, and banks will be able to convert to microfinance banks if they do not meet the increasing minimum charter capital requirements of classical banks.
The deputy chairman added that microfinance banks will be subject to a requirement that at least 70 percent of the total loan portfolio be used for business financing.
Now it is more convenient for financial organizations to work with the population or small and medium-sized businesses, while interaction with microbusinesses requires an individual approach, which makes working with them uninteresting for conventional banks.
The minimum amount of authorized capital of microfinance banks will be set at 50 billion soums ($4 million), and the maximum is 500 billion soums ($40 million).
Meanwhile, Uzbek commercial banks' assets amounted to 652.1 trillion soums ($52.9 billion) as of January 1, 2024.
The data from the Central Bank of Uzbekistan shows that the real growth of assets totaled 12 percent year-on-year.
Banks' assets in foreign currency exceeded 291.7 trillion soums ($23.6 billion) by the end of 2023.