Law of the Republic of Uzbekistan on Amendments to the Law 'On Banks and Banking Activity'

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OKOZ:
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07.00.00.00 Legislation on finance and credit. Banking activity / 07.21.00.00 Banking activity / 07.21.01.00 General matters;
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21.00.00.00 Comprehensive documents on amendments and additions / 21.01.00.00 Laws of the Republic of Uzbekistan]
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State and public structure / State authority bodies. State and economic management bodies] Send suggestions for the document Listen to audio Get reference from document element Send suggestions for the document Listen to audio Get reference from document element Law of the Republic of Uzbekistan Send suggestions for the document Listen to audio Get reference from document element On Amendments to the Law of the Republic of Uzbekistan "On Banks and Banking Activity" Send suggestions for the document Listen to audio Get reference from document element Adopted by the Legislative Chamber on February 7, 2023 Approved by the Senate on April 7, 2023 Send suggestions for the document Listen to audio Get reference from document element Send suggestions for the document Listen to audio Get reference from document element In recent times, a number of measures have been implemented in our country aimed at ensuring the stability of the financial and banking sectors, providing convenient and high-quality financial services by banks, and also increasing the population's confidence in banks. Send suggestions for the document Listen to audio Get reference from document element At the same time, the need has arisen to create additional legal conditions to ensure the stability of the banking sector, increase the capitalization level of banks, expand their resource base, and also attract foreign investment to this sector. Send suggestions for the document Listen to audio Get reference from document element This Law introduces amendments to the Law of the Republic of Uzbekistan "On Banks and Banking Activity" that provide for the gradual increase in the minimum amount of bank share capital from 100 billion sum to 500 billion sum by January 1, 2025. In addition, restrictions on the purchase of bank shares by non-residents are partially lifted, granting them the right to purchase shares placed in foreign stock markets. Send suggestions for the document Listen to audio Get reference from document element This Law will help further increase the capitalization level of banks and expand their resource bases, broaden their participation in structural change processes in the economy, and also attract foreign investment to the banking sector. Send suggestions for the document Listen to audio Get reference from document element
Article 1.
The Law of the Republic of Uzbekistan No. 216-I "On Banks and Banking Activity" adopted on April 25, 1996 (in the edition of Law No. URQ-580 adopted on November 5, 2019) (Bulletin of the Chambers of the Supreme Assembly of the Republic of Uzbekistan, 2019, No. 11, Article 788; 2020, No. 1, Article 1; 2021, Supplement to No. 4, No. 10, Article 968) shall be amended as follows:
Send suggestions for the document Listen to audio Get reference from document element 1)
Article 13:
Send suggestions for the document Listen to audio Get reference from document element the first part shall be stated in the following wording:
Send suggestions for the document Listen to audio Get reference from document element "The minimum amount of bank share capital:
Send suggestions for the document Listen to audio Get reference from document element until September 1, 2023, shall be 100 billion sum; Send suggestions for the document Listen to audio Get reference from document element from September 1, 2023, shall be 200 billion sum; Send suggestions for the document Listen to audio Get reference from document element from April 1, 2024, shall be 350 billion sum; Send suggestions for the document Listen to audio Get reference from document element from January 1, 2025, shall be 500 billion sum"; Send suggestions for the document Listen to audio Get reference from document element the fourth part shall be replaced by the following fourth and fifth parts:
Send suggestions for the document Listen to audio Get reference from document element "The share capital of a bank being established or being reorganized in the form of merger, division, and separation shall be formed based on the minimum amount of bank share capital specified in the first part of this article, on the day the bank is established or reorganized. In this case, the minimum amount of bank share capital must be formed by the founders of the bank before the application for state registration and licensing of the bank is submitted. Funds contributed to the share capital of the bank being established are transferred to a reserve account opened at the bank. Send suggestions for the document Listen to audio Get reference from document element Banks must adjust the amount of their share capital within the timeframes specified in the first part of this article in accordance with the requirements indicated in the first part of this article. Banks with a state share in their share capital, when privatized by selling the state share in full to non-residents, have the right to establish timeframes other than those specified for adjusting the bank share capital to the minimum amount specified in the first part of this article"; Send suggestions for the document Listen to audio Get reference from document element the fifth part shall be considered the sixth part; Send suggestions for the document Listen to audio Get reference from document element
2) The fifth part of Article 17
shall be stated in the following wording:
Send suggestions for the document Listen to audio Get reference from document element "Legal entities registered in a state or territory that does not provide for disclosure of the identity of the person providing a preferential tax regime and (or) the ultimate beneficial owner, and physical persons residing in such a state or territory, cannot be founders and shareholders of a bank (except for legal and physical persons who have purchased bank shares in foreign stock markets)"; Send suggestions for the document Listen to audio Get reference from document element 3)
Article 22:
Send suggestions for the document Listen to audio Get reference from document element the fifth part shall be deleted; Send suggestions for the document Listen to audio Get reference from document element the sixth through tenth parts shall be considered the fifth through ninth parts, respectively. Send suggestions for the document Listen to audio Get reference from document element
Article 2.
The Central Bank of the Republic of Uzbekistan and other interested organizations shall ensure the implementation of this Law, its delivery to executors, and the explanation of its essence and importance among the population. Send suggestions for the document Listen to audio Get reference from document element
Article 3.
The Cabinet of Ministers of the Republic of Uzbekistan:
Send suggestions for the document Listen to audio Get reference from document element shall align government decrees with this Law; Send suggestions for the document Listen to audio Get reference from document element shall ensure that republican executive authority bodies review and repeal their normative legal documents that contradict this Law. Send suggestions for the document Listen to audio Get reference from document element
Article 4.
This Law enters into force from the day of its official publication. Send suggestions for the document Listen to audio Get reference from document element The rules of paragraph 1 of Article 1 of this Law shall also be applied to legal relations that arose before the implementation of this Law. Send suggestions for the document Listen to audio Get reference from document element President of the Republic of Uzbekistan Sh. MIRZIYOYEV Send suggestions for the document Listen to audio Get reference from document element Tashkent city, Send suggestions for the document Listen to audio Get reference from document element April 19, 2023, Send suggestions for the document Listen to audio Get reference from document element URQ-831 (National database of legislative information, 20.04.2023, No. 03/23/831/0219)