President Shavkat Mirziyoyev yesterday signed the Uzbekistan’s Banking System Reforming Strategy for 2020-2025 Decree.
The decree approved the Strategy and roadmap for its implementation.
The document has outlined the conceptual framework, principles and areas of reforming the banking sector for the next 5 years.
According to it, the main araeas of medium-term reforms in the banking sector are:
- restructuring of the sector - transformation and privatization of banks;
- improving the legal framework by introducing the standards of the Basel Committee on Banking Supervision, international financial reporting standards, etc.;
- improving and expanding of service quality through customer-oriented services, lending mechanisms and business automation processes;
- staff skills enhancing.
By 2025, it is planned to achieve the following goals:
- increasing the share of assets of banks in which state holds no share from the current 15% to 60% by 2025;
- increase the share of liabilities to the private sector in the total liabilities from the current 28% to 70% before 2026;
- attract at least three strategic foreign investors with the necessary experience, knowledge and reputation to at least three state-owned banks by 2025;
- increase the share of non-bank credit institutions in total lending from the current 0.35% to 4% by 2025.
The strategy was developed by experts from the Ministry of Finance and the Central Bank with the assistance of World Bank experts. It takes into account international practices and approaches, including the experience of the CIS and Eastern European countries.