On Amendments and Additions to the Regulation on Requirements for Managing Liquidity of Commercial Banks

Decision of the Board of the Central Bank of the Republic of Uzbekistan, registered on February 25, 2020, Registration No. 2709-4

Effective Date: March 1, 2020

[OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.19.00.00 Banking System / 07.19.03.00 Bank Reserves and Funds. Capitalization] [TSZ: 1. Finance / Foreign Exchange Regulation. Precious Metals (Stones)]

Decision of the Board of the Central Bank of the Republic of Uzbekistan On Amendments and Additions to the Regulation on Requirements for Managing Liquidity of Commercial Banks

[Registered by the Ministry of Justice of the Republic of Uzbekistan on February 25, 2020, Registration No. 2709-4]

In accordance with the Laws of the Republic of Uzbekistan "On the Central Bank" and "On Banks and Banking Activities", the Board of the Central Bank of the Republic of Uzbekistan resolves:

1. Amendments and additions shall be made to the Regulation on Requirements for Managing Liquidity of Commercial Banks, approved by Decision No. 19/14 of the Board of the Central Bank of the Republic of Uzbekistan dated July 22, 2015 (Registration No. 2709, dated August 13, 2015) (Collection of Legislation of the Republic of Uzbekistan, 2015, No. 32, Article 437), in accordance with the Appendix.
2. This decision shall enter into force from March 1, 2020.

Chairman of the Central Bank M. NURMURATOV Tashkent, January 16, 2020 No. 1/5

APPENDIX to the Decision of the Board of the Central Bank of the Republic of Uzbekistan dated January 16, 2020 No. 1/5 Amendments and Additions Being Made to the Regulation on Requirements for Managing Liquidity of Commercial Banks

1. Item 1 shall be supplemented with the following introductory phrase: "conditional obligation in credit allocation — an obligation arising after financial resources for funding the loan have entered the bank under a credit contract, provided that this condition is not yet met as of the reporting date."

2. Item 3 shall be stated in the following revised form: "3. The following are included among high-liquidity assets: cash; securities of the Government and the Central Bank of the Republic of Uzbekistan; funds in the bank's accounts at the Central Bank, excluding funds in the mandatory reserve account of the Central Bank; securities issued by governments and central banks of countries with a low risk level, as well as claims on such governments and central banks; funds in correspondent accounts opened in foreign currency at banks, and overnight (daily) interbank deposits, holding ratings equal to the investment grade rating of "Standard & Poor's", "Fitch Ratings" and "Moody's Investors Service" companies of countries with a low risk level, or the recognized rating level by other rating companies recognized by the Central Bank; funds in correspondent accounts opened in foreign currency at local banks holding ratings not lower than "B-" / "B3" of one of the companies "Standard & Poor's", "Fitch Ratings" and "Moody's Investors Service", or the recognized rating level by other rating companies recognized by the Central Bank; securities issued by the International Monetary Fund, World Bank Group (International Bank for Reconstruction and Development, International Finance Corporation, International Association for Investment Guarantees, International Development Association), Asian Development Bank, Asian Infrastructure Investment Bank, European Bank for Reconstruction and Development, European Investment Bank, European Investment Fund, Islamic Development Bank, and development banks of the Council of Europe."

3. Items 36 and 43(1) shall be deemed to have lost their force.

4. Item 43 shall be stated in the following revised form: "43. To ensure the timely and full fulfillment of banks' obligations, they must comply with the established standards for instantaneous liquidity, liquidity coverage, net stable funding ratio, and the share of high-liquidity assets in total assets."

5. In the third line of Item 43(2), the words "10 percent" shall be replaced with "25 percent".

6. Item 52(1) shall be supplemented with the following content: "52(1). Starting from June 1, 2020, the share of banks' high-liquidity assets in total assets must be not less than 10 percent at the end of each day."

7. The fifth line of Item 55 shall be stated in the following revised form: "15 percent of off-balance sheet items, excluding deposits secured by letters of credit and guarantees, and conditional obligations in credit allocation."

(National Database of Legislative Acts, February 25, 2020, No. 10/20/2709-4/0221)