2023-01-11

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Regulation "On Coordination and Regulation of Microfinance Organizations and Pawnshops Activities" Registered at the Ministry of Justice

Norms from previous regulations (registration numbers 2453, 2994, 3300) are consolidated into a single text developed for alignment with the Law "On Non-Bank Credit Organizations and Microfinance Activities". Asset classification and reserve creation rules for microfinance organizations are established, along with prudential norms including capital adequacy and liquidity ratios. General operation rules for pawnshops, microloan issuance procedures, property storage protocols, and types of reports submitted to the Central Bank are defined.

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Central Bank of the Republic of Uzbekistan

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This document was developed for the purpose of alignment with the Law "On Non-Bank Credit Organizations and Microfinance Activities" while consolidating the norms from documents regulating the activities of microcredit organizations and pawnshops, including, the Regulation "On Requirements Imposed by the Central Bank on the Internal Audit Service of Microcredit Organizations" (registration number 2453, 25.04.2013), the Regulation "On the Procedure for Submission of Financial Reports and Electronic Data to the Central Bank of the Republic of Uzbekistan by Microcredit Organizations and Pawnshops" (registration number 2994, 5.04.2018), the Regulation "On Coordination and Regulation of Microcredit Organizations and Pawnshops Activities" (registration number 3300, 7.05.2021) into a single document.

The document establishes the following:

  • classification of the quality of assets of microfinance organizations and creation and use of reserves based on this, classification of asset quality into a better category than the previously classified category;
  • establishment of prudential norms for microfinance organizations when operating at the expense of attracted funds (capital adequacy ratio, liquidity ratio, maximum amount of risk related to one borrower or a group of related borrowers, total amount of large risks, amount of risk to a single person related to the microfinance organization, maximum amount of investments in the authorized fund (authorized capital) and (or) debt securities of legal entities);
  • general rules for carrying out activities and operations by pawnshops, procedure for formalizing and issuing microloans, as well as the procedure for temporary storage of property in pawnshops;
  • types of reports to be submitted to the Central Bank by microfinance organizations and pawnshops.

Details at this link.

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