Regulatory Alerts2016-01-12
Added · Updated
Explanatory Note on Amendments and Additions to the Procedure for Classifying Asset Quality, Forming Reserves for Potential Losses by Commercial Banks, and Their Use
The Central Bank of Uzbekistan mandates that commercial banks establish a mandatory reserve deposit equal to their special reserves for potential losses, with funds recalculated on the 10th, 20th, and last day of each month and settled within three working days. The Bank is authorized to issue mandatory instructions for additional reserves and to recover funds or apply sanctions under Article 53 of the Law on the Central Bank if banks fail to comply. Asset classification rules are tightened, reclassifying loans with principal and interest payments overdue by 180 days, assets involved in court proceedings, extended payment terms due to insolvency, and unsold collateral held for over three months as "doubtful." Additionally, all loan repayments must be distributed evenly across the entire contract term to prevent the emergence of problematic credits.