FOREIGN EXPERTS: THE BANKING SYSTEM OF UZBEKISTAN IN LINE WITH INTERNATIONAL STANDARDS

In 2015, the total capital of country’s financial institutions increased by 24.8 percent compared with the previous year.

An important factor in this was the consistent implementation of the objectives outlined in the Presidential decree "On priority directions of further reforming and increasing sustainability of financial-banking system of the republic in 2011-2015 and achieving high international rating indicators" from November 26, 2010, as well as effective management of the system by the Central Bank of the Republic of Uzbekistan.

Positive changes in the banking sector along with augmentation of success and contribute to the enhancement of its international prestige. Leading international rating agencies Standard and Poor’s, Fitch Ratings and Mody’s Investors Service annualy assign the banking system of our country as "stable". A recent report by the International Finance Corporation and the World Bank’s Doing Business 2016 Uzbekistan lending rose from 105th to 42nd place among 189 countries in the world. According to the rating assessment of the American magazine "Global Finance", the Central Bank of the country has moved to a higher level among the central banks of the world.

Today, the financial and banking system provides a stable and reliable operation, provides operational and guaranteed services to customers.

This is confirmed by the opinion of the participants of IV Tashkent International Banking Forum, which was recently held.

Lee Sang Hak, an international auditor (Republic of Korea):

— We know that the global financial and economic crisis had a negative impact on the economy of many countries, has led to the bankruptcy of a number of credit institutions, violation of financial liquidity of the banking system and reduce lending capacity. In some countries, up to now, the process of restoring economic stability.

At a time when globally there is a search for ways out of this difficult situation, in 2008-2014, the banks of Uzbekistan has provided more than 28 trillion soums of loans to businesses. 29 trillion soums of loans directed on the investment objectives. It is noteworthy that all these means are formed without relying on external debts, and from domestic sources.

Successive reforms in the banking system of your country, make it possible not only reliable protection against the negative impact of the financial crisis, but also to increase lending to the real economy, to radically improve the quality of services.

Watching for a few years, the activities of the banking system of Uzbekistan, we were convinced that the capital of financial institutions increased by 24.3 percent. This is three times more common international standard.

Of course, these positive indicators were not achieved easily. They were made possible by specific measures: banks have established a special department to monitor the loan portfolio and to optimize the level of risk in order to strengthen liquidity, reliability and resource base established strong links with international financial institutions, is constantly expanding service network, the allocation of loans to the priority given to the interests of the client.

The refinancing rate of the Central Bank set at a reasonable level for the business, which gives great opportunities to entrepreneurs. In the CIS countries, in spite of the relatively low rate of refinancing, the growth rate of credit investments ranging between 3-10 percent. In Uzbekistan this figure during the last decade, an average of 30 percent. This shows that your country’s refinancing rate is set at the optimum level for sectors of the economy credits. Therefore, entrepreneurs without any difficulty get loans from banks and achieve high results.

In addition, the opening of more branches of banks, a wide network of info-offices, building a base of customers, the use of advanced technologies and products give banks the opportunity to increase its role and share in the retail market. It is known, stable operation of banks depends on professionalism. In this sense, it should be noted that the banking system of Uzbekistan properly designed personnel policy, and it is managed by the Central Bank in accordance with international standards. All of this keeps stable liquidity and solvency. Short-term training courses organized by the School of Business at the Cabinet of Ministers, the Banking Academy, the Association of Banks, Regional Bank Training Center and other institutions play an important role in improving the training of personnel.

In short, we appreciate the ongoing reforms in the banking system of Uzbekistan. The economic recession worldwide has once again proved the correctness of the policy of the Central Bank of the Republic of Uzbekistan. The banking system of your country is reliable, stable and guaranteed.

Sergei Popov, an analyst at the International reytingo¬vogo agency "Fitch Ratings":

— Before to cooperate with any other state, each investor initially analyzes its economic potential, trying first of all examine in depth the activities of the banking system. It is safe to say that Uzbekistan - it is a country with great potential. The banking system of your country, realizing a stable and efficient operation, justifies the trust of customers. Therefore our company for several years the banking system of Uzbekistan provides a high rating. In particular, an analysis of last year, it was reported that the system take all measures to strengthen the loan portfolio, as at the highest level established work on the identification and analysis of risks management.

All operations related to risk management, are carried out in the framework of the established rules and restrictions. Not admitted lack of resources. Procedures in the area of ​​lending and interest rate policy designed at the optimum level for the entrepreneurs who have created the best conditions.

Stable operation of the banking system is based primarily on effective management. Designed rugged control concept, which gives an opportunity to expand its resource base, improve quality assets, storage of household deposits in banks in full.

Another important indicator - an indicator of the loan. Uzbekistan has carried out extensive work on the management of agreements on the exchange of credit information and collateral. Therefore, a rating estimation given in this direction in the reports of the International Finance Corporation and the World Bank, much higher than the Member States of the Organization for Economic Cooperation and Development (OECD). This is yet another confirmation of the fact that the banking system of your country created a favorable environment for investors and entrepreneurs.

It should be noted that the banking system of Uzbekistan much different comprehensive compliance with international standards and requirements. Because the highest rating assigned by our company of the banking system of Uzbekistan is well-deserved. I also want to emphasize that the activity of the banking system of Uzbekistan was so what we expected to see. Its financial performance in the future will remain stable.

Deepak Reina, investor (Singapore):

— As an entrepreneur, working in Uzbekistan for several years, I want to note that there are created opportunities not only for the free activity, but also the expansion of production at our joint venture. All the services offered by banks - modern. In making payments there is no problem. Banking operations are carried out, without leaving the office, using the "Bank-client" program. This in turn allows you to save time and reduce costs. So now your country’s banking system is highly appreciated by international experts and auditors. This in turn allows you to save time and reduce costs. So now your country’s banking system is highly appreciated by international experts and auditors.

Stable and guaranteed performance of the banking system of Uzbekistan is very convenient for foreign investors operating in your country.

Kim Ying Zhu, Board Chairman at UzKDB:

— In Uzbekistan we do business for almost twenty years. Since that time, we have convinced that a strong strategic policy in the management of the banking system is an important factor for the stable operation of financial institutions. Thanks to the attention of the head of your country, the adoption of relevant decrees and resolutions the capital of our bank from year to year is increasing, the resource base is strengthening. Also, number of branches is growing. As a result, we were rated as "stable" once from two prestigious international rating agencies. I would say that the banking system of Uzbekistan can be put as an example for the banks of many countries.

Pak Mo Zhong, president of the newspaper "The Korea Times":

— In your country during the years of independence carried out major reforms in the banking sector. The result is a stable and reliable banking system fully meets international standards. She became one of the decisive factors in the process of economic modernization.

At present, banks in Uzbekistan provide advanced services to foreign investors in accordance with their needs and desires.

According to foreign experts, in the banking systems of some countries and the negative trends seen today, when the volume of problem loans up to 40 percent of the loan portfolio. This leads to problems when returning money to investors who trusted them to the bank for safekeeping.

In such circumstances, the successive reforms of the banking system of Uzbekistan receive high recognition from the international community. In turn, strengthened the confidence of foreign investors. The same high level of trust and business people of the Republic of Korea. Therefore, we express gratitude to the leadership of the country has created all necessary conditions for work.

Nam Kisab, chairman of the Korea Export-Import Bank:

— Uzbekistan has great potential to further improve the rating on the indicator "Getting credit" because your country has accumulated some experience in the field of credit information sharing and the implementation of agreements on collateral.

According to a new report by the International Finance Corporation and the World Bank’s Doing Business 2016, Uzbekistan received in terms of "Index sharing credit" 7 points on vosmiballnoy system. This is significantly higher Estimates of the Member States of the Organization for Economic Cooperation and Development (OECD).

Also noteworthy is the fact that formed an effective and reliable mechanism based on the recommendations of the Basel Committee on Banking Supervision.

In the banking system of your country and work is focusing on the optimization of the conditions of deposits, the development and introduction of new deposit products, to improve quality of service. All of these factors will create a solid foundation for the banking system of Uzbekistan and high growth in 2016.

Over the past five years to strengthen the export potential of the republic banks allocated more than 29 bln. sums of investment credits. Also, more than 28 bln. granted to small businesses and private entrepreneurship. These figures each year account for at least 30 percent of all loans. It is gratifying that in this case the focus is on the production of import substitution, export-oriented products.

Utkir Kayumov, Deputy Director of the Center for Study of Public Opinion "Ijtimoiy Fikr", Doctor of Economics:

— In recent years, our center holds a lot of polls to determine the role and place of the banking system in the community. I am glad that these respondents expressed positive opinions. So, in the latest study of them received the following answers to the questions: "Bank employees perform their duties conscientiously, politely and professionally," "provide operational assistance in providing advice and problem-solving," "timely implementation of all the operations of storage deposits" "fully complied with the established order, the offense is not allowed."

Survey participants are aware that deposits are fully guaranteed by the state. They emphasized that an important factor in this case serve as confidence in the bank and a high level of service.

According to the study, it became known that the increased quality of the serving staff in decision-bank settlement documents and ensure their implementation. The majority of respondents expressed their satisfaction on the issue.

In addition, respondents noted the convenience of bank cards when making payments, and also emphasized by the conditions for the loan.

High score given to the practice of the leading financial institutions in the country to engage graduates of professional colleges in entrepreneurship. This marked separately conducted field seminars and meetings with youth, during which offer loans on favorable terms. It is these tools are a great help in providing employment and in the fact that young men and women find their place in life.

Respondents emphasized that "bank loans contribute to the socio-economic development of territories, increase the number of subjects of the service sector" and that "there are no difficulties and problems in the repayment of the loan."

In general, the results of opinion polls carried out, the banks in a timely and qualitatively fulfilled orders and decrees of the President. Improving the well-being of the people through the creation of a favorable business environment for entrepreneurs today remains an urgent task. This in turn creates opportunities for employment. That’s why business confidence in banks is high.

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