Regulatory Alerts2021-11-19 | 27/7Added · Updated
On Amendments and Additions to the Regulation on Classifying Asset Quality in Commercial Banks and Forming Reserves to Cover Potential Losses on Assets and Their Use
The Central Bank of Uzbekistan amends the regulation on asset quality classification and reserve formation for commercial banks by introducing new definitions for assets, credit risk, and overdue debt, and establishing a de minimis threshold for classification downgrades. The amendments update the criteria for classifying assets into standard, substandard, and doubtful categories based on specific overdue days and collateral values, while introducing a formula for calculating reserves when high-liquidity collateral is present. It also defines conditions under which modified credit terms are not considered restructured assets and mandates that special reserves be formed in the currency in which the asset originated.