On Measures for Further Liberalization and Reform of the Banking System

25.09.2017

29.09.2005

08.01.2004

02.10.2002

20.05.2002

05.12.2000

21.03.2000

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[OKOZ:
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07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.19.00.00 Banking System / 07.19.02.00 Commercial Banks. Private Banks. Foreign Banks;
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07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.19.00.00 Banking System / 07.19.03.00 Bank Reserves and Reserves. Capitalization;
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07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.05.00 Preferential Lending]
[TSZ:
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Finance / Banks and other credit institutions. Loans] 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 Decree of the President of the Republic of Uzbekistan Send suggestions for the document Listen to audio Get reference from document element ON MEASURES FOR FURTHER LIBERALIZATION AND REFORM OF THE BANKING SYSTEM Send suggestions for the document Listen to audio Get reference from document element See previous edition. [OKOZ:
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07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.19.00.00 Banking System / 07.19.01.00 Central Bank, its structural divisions and institutions;
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09.00.00.00 Entrepreneurship and Economic Activity / 09.14.00.00 Agriculture / 09.14.06.00 Farming Enterprises. Cluster and Greenhouse Farms]
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In order to further liberalize and reform the banking system, increase the independence of commercial banks and turn them into active participants in investment processes, expand lending to farmers, farming enterprises, and small business entities, strengthen the protection of depositors' interests in banks, as well as form mutually beneficial partnership relations between banks and their customers, and expand cooperation with foreign banks:
(Entry section in the edition of Decree of the President of the Republic of Uzbekistan No. PF-3376 dated January 8, 2004 — UR QHT, 2004, No. 1-2, Article 9) See previous edition. (Pursuant to Decree of the President of the Republic of Uzbekistan No. PF-5189 dated September 12, 2017, Item 1 has lost its force — National Database of Legislative Acts of the Republic of Uzbekistan, 2017) See previous edition. Send suggestions for the document Listen to audio Get reference from document element [OKOZ:
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07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.19.00.00 Banking System / 07.19.02.00 Commercial Banks. Private Banks. Foreign Banks;
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07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.21.00.00 Banking Activity / 07.21.06.00 Credit Operations (also see 07.22.00.00)]
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2. Taking into account the experience of foreign banks, it is considered one of the most important tasks of commercial banks to use all opportunities to continuously increase their own capital and the volume of attracted funds, as well as to expand the forms, types, and volumes of lending to the real sector of the economy, primarily small business.
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In order to encourage the activity of commercial banks in increasing their own funds directed towards lending for the development of small business:
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The proposal of the Central Bank of the Republic of Uzbekistan to introduce a mechanism for setting the Central Bank's variable refinancing rate starting from April 1, 2000, and to change it monthly based on the rate of inflation, demand, and supply in the money market, is approved; Send suggestions for the document Listen to audio Get reference from document element Taking into account the rate of the Central Bank's refinancing rate, it is recommended to reduce interest rates on loans issued by commercial banks to production micro-enterprises and small enterprises; Send suggestions for the document Listen to audio Get reference from document element it is considered appropriate for commercial banks to set interest rates on term deposits (deposits) attracted from individuals at no less than 75% of the current refinancing rate of the Central Bank, and on deposits of individuals at no less than 50%, while maintaining unchanged interest rates for the entire duration of the deposit agreement for deposits attracted on time. (Item 2 in the edition of Decree of the President of the Republic of Uzbekistan No. PF-3376 dated January 8, 2004 — UR QHT, 2004, No. 1-2, Article 9) Send suggestions for the document Listen to audio Get reference from document element
3. The Central Bank of the Republic of Uzbekistan and commercial banks are recommended to do the following within one month:
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Submit proposals to the Cabinet of Ministers on encouraging the additional attraction of free funds of individuals and legal entities, as well as funds of foreign banks and financial institutions, in cooperation with the Ministry of Finance of the Republic of Uzbekistan; Send suggestions for the document Listen to audio Get reference from document element Develop and implement a mechanism for the efficient and rational use of reserves of commercial banks at the Central Bank in order to encourage the increase of their own funds directed towards lending to production micro-enterprises, small and medium-sized enterprises; Send suggestions for the document Listen to audio Get reference from document element In cooperation with the National Bank of Foreign Economic Activities of the Republic of Uzbekistan, the Ministry of Finance, and other interested agencies, develop and approve a proposal to introduce a rating method for assessing the reliability and liquidity of commercial banks as a pilot project in the republic, based on world experience. Send suggestions for the document Listen to audio Get reference from document element
4. The Association of Banks of Uzbekistan, in cooperation with the Central Bank of the Republic of Uzbekistan, the National Bank of Foreign Economic Activities, the Ministry of Finance, international financial organizations, and representative offices of foreign banks in the republic, shall submit proposals to the Cabinet of Ministers within three months on the establishment of an International Center for providing banking and financial services.
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The following are defined as the main directions of the Center's activity:
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Get reference from document element conducting research on the urgent issues of demand and supply in financial and money markets, currency circulation, stability of the national currency, and further development of the financial and banking system; Send suggestions for the document Listen to audio Get reference from document element developing recommendations on improving the policy of reforming the financial and banking system, ensuring its greater openness and transparency, strengthening the payment and settlement mechanisms in the economy, liberalizing currency policy, and forming the most favorable investment climate in the republic; Send suggestions for the document Listen to audio Get reference from document element organizing regular rating assessment of their reliability, liquidity, and profitability indicators based on the results of international independent audits of banks and financial institutions; Send suggestions for the document Listen to audio Get reference from document element providing consulting services to foreign companies and banks on the opportunities and prospects of investing in the sectors of the economy of Uzbekistan and participating in the development of the republic's financial and banking system. Send suggestions for the document Listen to audio Get reference from document element
5. Commercial banks are permitted to provide cash funds in the amount of 100% of the volume of products actually purchased from them in contracts concluded with procurement organizations that purchase agricultural products from the population, farming, and farming enterprises, in accordance with the prices and delivery terms specified in these contracts.
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The Central Bank of the Republic of Uzbekistan, in cooperation with the Ministry of Finance, the Ministry of Agriculture and Water Resources, and other relevant ministries and agencies, shall develop and submit to the Cabinet of Ministers for approval within two weeks the procedure for commercial banks to provide cash funds to procurement organizations and to use such funds for settlement for products purchased from the population, farming, and farming enterprises, taking into account the specific features of preparing agricultural products. See previous edition. (Pursuant to Decree of the President of the Republic of Uzbekistan No. PF-3664 dated September 29, 2005, Item 6 has lost its force — UR QHT, 2005, No. 39, Article 295) [OKOZ:
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07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.21.00.00 Banking Activity / 07.21.05.00 Bank deposits and other deposit operations]
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7. Commercial banks shall ensure that cash funds are provided to the population without restriction upon the customer's first request for deposits, regardless of where the bank branch that accepted the initial deposit is located, by all branches of that bank.
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8. The proposal of the Association of Banks of Uzbekistan to the Central Bank of the Republic of Uzbekistan and the Ministry of Finance to establish a collective insurance Fund for household savings on the basis of the "Deposit Protection" Insurance Fund and to bring its statutory capital to 500 million soums is accepted.
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The following are defined as the main tasks of the Collective Insurance Fund for Household Deposits:
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Get reference from document element increasing the population's confidence in the banking and financial system; Send suggestions for the document Listen to audio Get reference from document element ensuring adequate insurance protection of banks' liability for household deposits on the basis of developing and implementing efficient and effective insurance systems; Send suggestions for the document Listen to audio Get reference from document element implementing the most optimal strategy for investing funds in reliable high-liquidity state and corporate securities and bank deposits. Send suggestions for the document Listen to audio Get reference from document element The Ministry of Finance of the Republic of Uzbekistan and the Central Bank, in cooperation with the Association of Banks of Uzbekistan, shall submit within one month to the Cabinet of Ministers for approval the normative documents establishing the procedure for forming the capital and activity of the Collective Insurance Fund for Household Deposits, specifying that the Collective Insurance Fund is established in accordance with the procedure established by law from the funds of the "Deposit Protection" Insurance Fund and additional contributions of commercial banks. [OKOZ:
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07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.19.00.00 Banking System / 07.19.01.00 Central Bank, its structural divisions and institutions;
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07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.24.00.00 Securities. Securities Market / 07.24.04.00 Professional Activity in the Securities Market / 07.24.04.04 Reliable Management of Investment Assets]
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9. The following are established:
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Risks associated with the formation of bank assets, including the credit portfolio, relate to entrepreneurial risk, and their management falls within the authority of the management of commercial banks. The Central Bank of the Republic of Uzbekistan exercises control over the management of risks in commercial banks; Send suggestions for the document Listen to audio Get reference from document element the sources of funds placed by individuals in deposits in commercial banks are not declared. Send suggestions for the document Listen to audio Get reference from document element
10. It is prohibited for heads of ministries and agencies, local authorities, and management bodies to interfere in the activities of commercial banks and their branches, including the appointment of branch management staff, and to demand various payments and fees from bank funds;
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Interference by supervisory and law enforcement agencies in the banks' activities regarding the management of entrepreneurial risks associated with the formation of the bank-credit portfolio and assets is prohibited. Send suggestions for the document Listen to audio Get reference from document element
11. The Central Bank of the Republic of Uzbekistan and the Ministry of Finance, in cooperation with the Ministry of Justice, shall submit to the Cabinet of Ministers within one month proposals for amendments and additions to the current legislation arising from this Decree.
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12. The Cabinet of Ministers of the Republic of Uzbekistan shall adopt a decision within two weeks on the implementation of this Decree.
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13. Control over the implementation of this Decree is entrusted to the First Deputy Prime Minister of the Republic of Uzbekistan B.S. Hamidov and the Chairman of the Central Bank of the Republic of Uzbekistan F.M. Mullažonov.
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President of the Republic of Uzbekistan I. KARIMOV 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 March 21, 2000, Send suggestions for the document Listen to audio Get reference from document element No. PF-2564 (Information Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 2000, No. 4, Article 110; 2002, No. 4-5, Article 95; 2002, No. 10-11, Article 189; Collection of Legislation of the Republic of Uzbekistan, 2000, No. 11, Article 172; 2004, No. 1-2, Article 9; 2005, No. 39, Article 295)