Uzbekistan’s banking system shows growth

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TASHKENT (TCA) — The trust of foreign investors in the banks of Uzbekistan will be strengthened and the latter’s credibility in the international financial markets will grow. To a large extent, this will be facilitated by the stable outlook awarded to them by Moody’s for the seventh time, Uzbekistan’s official Jahon information agency reports with reference to the rating agency.  

The agency’s new report, “Prospects of development of the banking system of Uzbekistan” states that in the current difficult circumstances, when there are still negative impacts of the global financial and economic crisis, Uzbekistan has shown a stable macroeconomic environment. In terms of profitability of banks among the CIS countries, Uzbekistan is one of the leading places. According to forecasts by Moody’s, this will continue in the coming years. The high profitability of banks will be a source for a further increase in lending. Important in the development of the economy is the diversification of exports and the direction of their revenues to investment.

The report also praised the dynamics of growth of banks’ assets and their quality. It is noteworthy that development trend is projected on this front. According to the agency specialists, Uzbekistan has simplified the order and procedures for obtaining bank loans, while annual interest rates are optimized and, crucially, a favorable business environment is created. All this contributes to the mounting demand for loans.

The banking system of the country has developed a strategy of search for domestic sources for economic growth for the year 2016. The Uzbek banking system is working hard to optimize deposit terms and conditions, develop and introduce new deposit products, improve service quality and secure efficient use of internal resources.

During 2016, a 25-percent growth is expected in the total capital of commercial banks of Uzbekistan. Along with this, the positive liquidity indicators will continue through to the forecast period due to the increasing amount of deposits.

Sergey Kwan

TCA