Mirziyoyev instructs bank leaders to take tough measures to eradicate corruption

Today, July 6, the President of Uzbekistan held a meeting on the implementation of the Banking System Reform Strategy for 2020-2025 and acceleration of the process of transforming commercial banks, aimed at increasing the share of the private sector in banking assets from 15 to 60 percent.

Photo: Presidential press service

According to the presidential press service, during the meeting, it was noted that in order to achieve these goals, a number of key issues will have to be resolved. In particular, it is necessary to intensify the process of transformation of banks.

“Currently, 6 commercial banks – Ipoteka Bank, Sanoat Qurilish Bank, Turon Bank, Asaka Bank, Aloqabank and Agrobank have begun cooperation with international financial institutions in matters of financial diagnostics, development of long-term strategies and privatization. However, work on the transformation of other commercial banks has barely been progressing well enough,” the head of state.

To change the situation, it was entrusted to conduct a stocktaking of functions not inherent to banks, to arrange training programs at the Corporate Retraining Center under the Central Bank to explain the tasks of bank transformation, primarily for local employees of banks. These tasks are assigned to the Central Bank.

In the course of the meeting, issues of improving the quality of the loan portfolio and bank projects were discussed. It was indicated that the share of problem loans, as shown by the results of stress tests, can grow several times, which is a serious challenge for the banking system.

In this regard, instructions have been given to analyze problem loans by region and create an effective mechanism to maintain the quality of loan portfolios. It was emphasized that once the banks’ loan portfolios undergo stocktaking, the Central Bank should develop specific measures to restore the financial capabilities of each customer in a difficult situation.

A separate aspect during the meeting was the discussion of the need to eradicate corruption in the banking sector. The head of state emphasized the need for bank chairpersons to take tough measures to eradicate corruption, introduce compliance control and other effective mechanisms.

Mirziyoyev noted the need for independent attraction of financial resources by commercial banks without state support.