In January 2024, the Banking Supervision Committee of the Central Bank of Uzbekistan (CBU) convened a series of meetings, totaling nine sessions, during which a comprehensive range of issues concerning the banking sector were thoroughly examined and addressed. A total of 30 matters were scrutinized, leading to decisive actions and pertinent decisions, CBU reported on February 13.
Furthermore, the meetings delved into the financial health and compliance status of credit institutions, covering ten issues related to the financial standing of banks and payment organizations. Discussions centered on assessing their adherence to the prudential standards mandated by the CBU, alongside evaluating the outcomes of examinations conducted within banks and microfinance entities.
As part of regulatory enforcement measures, the Committee took action against entities found to be non-compliant with prevailing legislative and regulatory frameworks. Notably, sanctions in the form of fines were imposed on one bank and one payment organization due to breaches of regulatory requirements. Moreover, three banks and two pawnshops were issued warnings regarding the potential application of further measures and sanctions as a result of identified shortcomings.
Earlier Daryo reported that as of January 1, 2024, Uzbekistan's banking industry grapples with a notable rise in non-performing loans (NPLs), which have surged by nearly 20%, amounting to UZS 16.6 trillion (equivalent to approximately $1.3 bn), as reported by the CBU. State-owned banks bear the brunt of this challenge, holding UZS 13.2 trillion ($1.06 bn) of the total NPLs, while commercial banks contribute UZS 3.3 trillion ($264 mn) to the overall figure.
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