Regulatory Alerts2019-11-07 | ЎРҚ-580Added · Updated
Law of the Republic of Uzbekistan on Amendments and Additions to the Law 'On Banks and Banking Activity'
The Law adopts a new edition of the Law 'On Banks and Banking Activity', establishing the Central Bank of Uzbekistan as the sole regulatory and licensing authority for banking operations. It defines key terms including Islamic banking and microfinance banks, and explicitly authorizes banks to conduct Islamic finance operations such as profit-sharing financing and Islamic leasing, subject to specific standards. The legislation imposes activity restrictions on banks, prohibiting direct production and trade, while setting specific portfolio limits for microfinance banks, including a maximum risk exposure of 5 billion UZS per borrower and a requirement that at least 70% of their lending targets entrepreneurship and self-employment.