Regulatory Alerts2016-01-11
Added · Updated
Clarification on the Regulation Concerning Asset Classification and Reserve Formation for Possible Losses in Commercial Banks
The Central Bank of Uzbekistan amended asset classification categories, renaming 'good' to 'standard', 'standard' to 'substandard', and 'substandard' to 'unsatisfactory'. It mandates that banks create reserves equal to 1% of the balance of 'standard' classified credits from post-tax profits. Specific criteria were established for classifying corporate securities investments as unsatisfactory, doubtful, or hopeless based on the duration of non-income generation over one, two, and three years respectively. These rules apply to commercial banks and take effect three months after official publication.
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