Decision of the Management of the Central Bank of the Republic of Uzbekistan on Amendments and Additions to the Regulation on Requirements for Commercial Banks' Credit Policy

Decision of the Management of the Central Bank of the Republic of Uzbekistan, registered on 02.05.2018, registration number 905-4

Date of entry into force

03.05.2018

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24.12.2021

03.05.2018

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Document lost its force on 24.12.2021

OKOZ:

1.07.00.00.00 Finance and credit legislation. Bank activity / 07.22.00.00 Credit / 07.22.03.00 Commercial banks' credits;
2.21.00.00.00 Complex documents on amendments and additions / 21.04.00.00 Framework normative‑legal documents

TSZ:

Finance / Banks and other credit institutions. Credits

Decision of the Management of the Central Bank of the Republic of Uzbekistan on Amendments and Additions to the Regulation on Requirements for Commercial Banks' Credit Policy

Registered by the Ministry of Justice of the Republic of Uzbekistan on 2 May 2018, registration number 905-4

This decision is based on the Management of the Central Bank of the Republic of Uzbekistan's decision No. 20/8 dated 31 August 2021 titled “On determining that the Regulation on Requirements for Commercial Banks' Credit Policy, as well as its amendments and additions, has lost its force” (registration number 905-7, 23.09.2021) which will lose its force as of 24 December 2021.

In accordance with the laws of the Republic of Uzbekistan “On the Central Bank of the Republic of Uzbekistan”, “On Banks and Banking Activities”, the President of the Republic of Uzbekistan’s decisions No. PK‑3270 dated 12 September 2017 “On Measures to Further Develop and Strengthen the Stability of the Republic’s Banking System” and No. PK‑3620 dated 23 March 2018 “On Additional Measures to Increase the Popularity of Bank Services”, the Management of the Central Bank of the Republic of Uzbekistan decides:

Amendments and additions shall be made to the Regulation on Requirements for Commercial Banks' Credit Policy, approved by the Management of the Central Bank of the Republic of Uzbekistan on 22 February 2000 with No. 429 (registration number 905, 2 March 2000) (Information Bulletin of ministries, state committees and bodies of the Republic of Uzbekistan, 2000, No. 5) in accordance with the annex.
This decision shall enter into force on the day of its official announcement.

Chairman of the Central Bank M. NURMURATOV

Tashkent, 14 April 2018, No. 14/21

Appendix to the Management of the Central Bank of the Republic of Uzbekistan's decision No. 14/21 dated 14 April 2018

Amendments and Additions to the Regulation on Requirements for Commercial Banks' Credit Policy

Add clause 1.6 with the following content:

1.6. The credit policy shall include the step‑by‑step procedure for making a decision on granting a credit (micro‑loan) and, when notifying about the granting of a credit (micro‑loan) or justifying a refusal, the procedure for registering and reviewing credit orders on the basis of transparency.

Clause 2.2 shall be expressed in the following wording:

2.2. Level of Authority and Distribution of Responsibility

In the credit policy, when branches make independent decisions on credit allocation, the limits of crediting should be indicated, and clear boundaries of responsibility between the head bank and its branches must be reflected.

The powers of all persons responsible for crediting must be recorded in the credit policy.

The reporting frequency to the Credit Committee meetings and the bank's governing bodies must also be stipulated in the credit policy.

Clause 2.4 shall be expressed in the following wording:

2.4. Accumulation of Credits

The credit policy must include requirements for monitoring the level of accumulation of credits and micro‑loans, including by credit types, economic sectors, geographic regions, and others. It must also set requirements for preparing the relevant reports to be regularly submitted to management.

Clause 2.9 shall be expressed in the following wording:

2.9. Interest Rates

The credit policy must include the concept of the “full cost of credit”, including complete information on all payments related to obtaining and servicing (repayment) the credit. This must cover, among other things, the cost of resources, expected expenses for credit servicing, brokerage fees, administrative costs, provisions against possible losses, and the bank’s margin. These conditions must also be reflected in the credit contract.

The credit policy must consider the following prohibitions:

Calculating interest on micro‑loan contracts in an amount exceeding half of the annual loan sum, imposing commissions and penalties (fines, late fees), and applying other liability measures;

Reviewing credit orders, providing services to loan accounts, payments for credit allocation, as well as imposing penalties for early termination of credits (micro‑loans) by natural persons and small business entities.

(Legal documents information national database, 03.05.2018, No. 10/18/905-4/1151)