TASHKENT, Uzbekistan, February 18. The President of Uzbekistan Shavkat Mirziyoyev has signed a law that introduces amendments to several legislative acts, paving the way for the creation of microfinance banks in Uzbekistan, Trend reports.
The law aims to establish a strong link between microfinance organizations and commercial banks while enabling microfinance institutions to attract additional financial resources, including deposits. It introduces the concept of a microfinance bank, authorized to provide banking services under specific conditions.
Moreover, the law creates a legal framework for transforming microfinance organizations into microfinance banks, microfinance banks into commercial banks, and vice versa. An amendment to the law on banks and banking activities allows microfinance organizations, microfinance banks, and commercial banks to shift their activities between these categories based on the new provisions.
Under an amendment to the Law on Licensing, Permitting, and Notification Procedures, the Central Bank of Uzbekistan will be responsible for issuing licenses for microfinance banking activities. The law takes effect upon its official publication.