RegAlert
2018-05-27 | 12/22

Added

Amendments and Additions to the Regulation on Requirements for Managing Commercial Banks' Liquidity

The Central Bank of Uzbekistan amends the Regulation on Requirements for Managing Commercial Banks' Liquidity by updating definitions for liquidity, liquid assets, large exposures, and low-risk countries. The amendments revise short-term maturity thresholds from seven to thirty days, establish a minimum instantaneous liquidity coefficient of 10 percent, and cap overnight operations at 25 percent of Tier 1 capital. Additional reporting obligations require stress scenario reports twice daily, and calculation methods for liquidity coefficients are adjusted to include specific interbank market positions.

Central Bank of the Republic of Uzbekistan logo

Uzbekistan

Central Bank of the Republic of Uzbekistan

Scan of the document's first page
Share

Get CBU alerts — same-day email on every new publication.

Resolution of the Board of the Central Bank of the Republic of Uzbekistan, registered on April 25, 2018, registration number 2709-2

Date of Entry into Force

May 27, 2018

All

View

Russian

Uzbek

O’zb

Uzbek|Russian

[OKOB:

1.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.19.00.00 Banking System / 07.19.03.00 Bank Reserves and Funds. Capitalization;

2.21.00.00.00 Comprehensive Documents on Amendments and Additions / 21.04.00.00 Departmental Normative Legal Documents]

[TSZ:

  1. Finance / Banks and other credit institutions. Credits]

Resolution of the Board of the Central Bank of the Republic of Uzbekistan

On Amendments and Additions to the Regulation on Requirements for Managing Commercial Banks' Liquidity

[Registered by the Ministry of Justice of the Republic of Uzbekistan on April 25, 2018, registration number 2709-2]

In accordance with the Laws of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan" and "On Banks and Banking Activity," the Board of the Central Bank of the Republic of Uzbekistan resolves:

  1. Amendments and additions shall be made to the [Regulation](/docs/2720359?ONDATE=17.11.2015 00#2720707) on Requirements for Managing Commercial Banks' Liquidity, approved by Resolution No. 19/14 dated July 22, 2015 of the Board of the Central Bank of the Republic of Uzbekistan (registration number 2709, August 13, 2015) (Collection of Legislative Acts of the Republic of Uzbekistan, 2015, No. 32, Article 437), in accordance with the Appendix.

  2. This resolution enters into force one month after the date of its official publication.

Chairman of the Central Bank M. NURMURATOV

Tashkent city,

March 31, 2018,

No. 12/22

Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated March 31, 2018 No. 12/22 Resolution

APPENDIX

Amendments and Additions to the Regulation on Requirements for Managing Commercial Banks' Liquidity

  1. In [Paragraph 1](/docs/2720359?ONDATE=17.11.2015 00#2720714):

the [second paragraph](/docs/2720359?ONDATE=17.11.2015 00#2720715) shall be stated as follows:

“bank's liquidity (hereinafter referred to as liquidity in the text) — the ability to finance the growth of bank assets and ensure timely fulfillment of obligations without unexpected (unfavorable) losses;”;

the [fifth paragraph](/docs/2720359?ONDATE=17.11.2015 00#2720718) shall be stated as follows:

“liquid assets — assets whose value is formed in the market, which can be easily sold and purchased in the short term based on market value, and are continuously sold and purchased without unexpected (unfavorable) losses;”;

shall be supplemented with the following eighth and ninth paragraphs:

“large exposure (deposit, credit, and other obligations) — an obligation belonging to one person or a group of affiliated persons, the volume of which exceeds 5 percent of the bank's Tier 1 capital;

countries with low risk levels — countries that have rating assessments equal to the investment rating assessments of the rating companies “Standard & Poor’s”, “Fitch Ratings”, and “Moody’s Investors Service” or rating assessments of other rating companies recognized by the Central Bank of the Republic of Uzbekistan.”.

  1. Shall be supplemented with Paragraph 11 of the following content:

“11. When a country, bank, or enterprise has recognized rating assessments from several of the rating companies “Standard & Poor’s”, “Fitch Ratings”, “Moody’s Investors Service”, and other rating companies determined by the Central Bank of the Republic of Uzbekistan, the lowest rating assessment among them shall be taken into account in the calculations under this Regulation.”.

  1. In [Paragraph 2](/docs/2720359?ONDATE=17.11.2015 00#2720722):

after the word “opened” in the [fifth paragraph](/docs/2720359?ONDATE=17.11.2015 00#2720726), the word “representation” shall be added;

in the [sixth paragraph](/docs/2720359?ONDATE=17.11.2015 00#2720727), after the words “Government of the Republic of Uzbekistan,” the words “and the Central Bank” shall be added;

in the [seventh paragraph](/docs/2720359?ONDATE=17.11.2015 00#2720728), the words “short-term (up to 7 days)” shall be replaced with “short-term (up to 30 days)”;

the [eighth](/docs/2720359?ONDATE=17.11.2015 00#2720729) and [ninth paragraphs](/docs/2720359?ONDATE=17.11.2015 00#2720730) shall be stated as follows:

“Securities issued by governments and central banks of countries with low risk levels, as well as other financial claims against such governments and central banks;

Securities of leading companies of countries with low risk levels included in the lists of developed stock exchanges, having rating assessments not lower than the investment rating level of the companies “Standard & Poor’s”, “Fitch Ratings”, and “Moody’s Investors Service” or equal to the rating assessment levels of other rating companies recognized by the Central Bank of the Republic of Uzbekistan.”.

  1. The [third](/docs/2720359?ONDATE=17.11.2015 00#2720733) and [fourth paragraphs](/docs/2720359?ONDATE=17.11.2015 00#2720734) of Paragraph 3 shall be stated as follows:

“Liquid assets referred to in the fourth paragraph of Paragraph 2 of this Regulation, excluding funds in the mandatory reserve accounts of the Central Bank;

Liquid assets placed in banks having rating assessments equal to the investment rating level of the companies “Standard & Poor’s”, “Fitch Ratings”, and “Moody’s Investors Service” in countries with low risk levels or to the rating assessment level of other rating companies recognized by the Central Bank.”.

  1. [Paragraph 4](/docs/2720359?ONDATE=17.11.2015 00#2720735) shall be supplemented with the following paragraph:

“Must not be pledged or encumbered as collateral.”.

  1. [Paragraph 20](/docs/2720359?ONDATE=17.11.2015 00#2720760) shall be supplemented with the following paragraph:

“The structural unit responsible for managing liquidity must submit reports to the bank management regarding the liquidity situation at least twice a day during stress conditions related to liquidity (mass withdrawal of deposits in one bank or throughout the banking system, problems in the banking system, the bank approaching bankruptcy, and other similar situations).”.

  1. In [Paragraph 21](/docs/2720359?ONDATE=17.11.2015 00#2720765), the word “at least” shall be added after the words “liquidity report”.

  2. In the [second paragraph](/docs/2720359?ONDATE=17.11.2015 00#2720768) of Paragraph 23, the words “creating an opportunity” shall be replaced with “notifying about”.

  3. In [Paragraph 26](/docs/2720359?ONDATE=17.11.2015 00#2720771):

shall be supplemented with the following twelfth paragraph:

“Liquidity forecast for the next 30 calendar days;”;

the [twelfth paragraph](/docs/2720359?ONDATE=17.11.2015 00#2720782) shall be considered the thirteenth paragraph.

  1. [Paragraph 36](/docs/2720359?ONDATE=17.11.2015 00#2720808) shall be stated as follows:

“36. When concluding unsecured interbank credit agreements, compliance with risk norms applicable to one borrower is required. Overnight operations are an exception, and their maximum amount must not exceed 25 percent of the bank's Tier 1 capital.”.

  1. [Paragraph 431](/docs/2720359?ONDATE=27.06.2017 00#3260562) shall be supplemented with the following paragraph:

“When determining the current liquidity coefficient, deposits and credits placed or attracted in the interbank market for up to 30 days are taken net. If assets exceed liabilities, the excess sum is added to the composition of current assets; if liabilities exceed assets, the excess sum is added to the composition of current liabilities. In this case, the smaller sum of assets and liabilities is deducted from both current assets and current liabilities.”.

  1. In [Paragraph 432](/docs/2720359?ONDATE=27.06.2017 00#3260563):

in the [first paragraph](/docs/2720359?ONDATE=27.06.2017 00#3260563), the words “in accounts and mandatory reserve deposits” shall be replaced with the word “in accounts”;

the [third paragraph](/docs/2720359?ONDATE=27.06.2017 00#3260565) shall be stated as follows:

“The instantaneous liquidity coefficient must not be less than 10 percent.”.

  1. [Paragraph 45](/docs/2720359?ONDATE=17.11.2015 00#2720818) shall be stated as follows:

“45. Liquidity coefficients are part of the overall assessment of liquidity adequacy.”.

  1. The [first paragraph](/docs/2720359?ONDATE=17.11.2015 00#2720819) of Paragraph 46 shall be stated as follows:

“46. In calculating liquidity, additional liquidity coefficients are also used by calculating the share of liquid assets in total assets and the share of liquid assets in non-permanent liabilities.”.

  1. In [Paragraph 47](/docs/2720359?ONDATE=17.11.2015 00#2720821), the words “allocated credits in deposits” shall be replaced with “deposits in allocated credits”.

  2. In the [second paragraph](/docs/2720359?ONDATE=17.11.2015 00#2720837) of Paragraph 54, the words “bank regulatory capital” shall be replaced with the words “total capital”.

  3. The [fifth paragraph](/docs/2720359?ONDATE=17.11.2015 00#2720845) of Paragraph 55 shall be stated as follows:

“15 percent of off-balance sheet items.”.

  1. In [Appendix 1](/docs/2720359?ONDATE=17.11.2015 00#2720848):

a) in the [first](/docs/2720359?ONDATE=17.11.2015 00#2720872) and [sixth paragraphs](/docs/2720359?ONDATE=17.11.2015 00#2720877) of Paragraph 4, the word “obligations” shall be replaced with the word “items”;

b) in [Paragraph 5](/docs/2720359?ONDATE=17.11.2015 00#2720878), the word “obligations” shall be replaced with the word “items”.

(National Database of Legislative Acts of the Republic of Uzbekistan, April 26, 2018, No. 10/18/2709-2/1100)

Read the rest free

Source: Central Bank of the Republic of Uzbekistan — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works

More like this from CBU

We email you every new CBU publication the day it's published.

Topics
capital