SOUMS IN FOCUS: CENTRAL BANK REGULATES COMMERCIAL BANKS’ ACTIVITIES

Tashkent, Uzbekistan - The Central Bank of the Republic of Uzbekistan has issued a set of regulations governing the activities of commercial banks in the country. The new rules aim to ensure the stability and security of the financial system, as well as protect the interests of depositors.

Deposit Insurance

• Commercial banks are required to maintain minimum capital requirements to ensure their solvency.
• Banks must also implement a deposit insurance scheme to safeguard deposits up to 100 million SOUMS per depositor.

Licensing and Registration

• Commercial banks must obtain a license from the Central Bank before operating in Uzbekistan.
• The license application process involves submitting required documents and information, including:
  • Charter capital
  • Business plan
  • Organizational structure

Supervision and Audit

• The Central Bank conducts regular supervision and audit of commercial banks to ensure compliance with regulatory requirements.
• Banks must submit financial reports and other documentation as required by the Central Bank.

Security Market Activity

• Commercial banks are allowed to engage in investment activities on the securities market, subject to:
  • Obtaining a license for banking activities
  • Meeting specific requirements
• Banks must maintain separate divisions for investment activities and ensure that employees have necessary certifications.

Information Disclosure

• Banks implementing investment activities must disclose certain information to investors, including:
  • Charter capital
  • State registration documents
  • Reporting on transaction results
• The banks must also provide the Agency for Capital Market Development with regular updates on their financial performance and investment activities.

Cash Import and Export Permit

• Commercial banks require a permit from the Central Bank to import or export foreign and national currency in cash.
• The permit is issued for each individual case, and the bank must submit an application to the Central Bank.

Central Bank’s Opinion on Premises and Equipment

• Each commercial bank must obtain the Central Bank’s opinion on the compliance of its premises, equipment, cash register, and hardware with regulatory requirements.
• The bank must submit an application to the main territorial department of the Central Bank, which will then issue a conclusion based on the examination.

Fees and Charges

• There is no fee charged for processing applications for permits issued by the Central Bank.
• However, commercial banks may be required to pay fees for services rendered by the bank.

The new regulations aim to promote stability and security in Uzbekistan’s financial system, as well as protect the interests of depositors. Commercial banks must comply with these requirements to maintain their licenses and continue operating in the country.