SENATORS PRELIMINARILY REVIEW CENTRAL BANK CHAIRMAN’S REPORT

On March 26 the session of the Committee on budget and economic reforms of the Senate of Oliy Majlis of the Republic of Uzbekistan preliminarily reviewed the report of the Chairman of the Board of the Central Bank of the Republic of Uzbekistan on the activities of the Central Bank in 2016.

The session involved senators, representatives of the Cabinet of Ministers of the Republic of Uzbekistan, the Central Bank, interested ministries and departments, heads of commercial banks, experts, as well as representatives of the mass media.

The report the Chairman of the Central Bank F. Mullazhanov emphasized that the activities of the Central Bank for the previous year were carried out in accordance with the Law of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan" and were aimed at unconditional implementation of the tasks defined by the President of the Republic of Uzbekistan Islam Karimov at the meeting of the Cabinet of Ministers dedicated to the socio-economic development in 2015 and crucial priorities of economic program for 2016 and the relevant decisions of the Senate of the Oliy Majlis adopted on the basis of the previous reports of the Central Bank.

It was noted that the implementation of the effective monetary and credit policy in the reporting year contributed to the economic growth while maintaining low rates of external demand and full implementation of the tasks defined by the "Main Directions of Monetary Policy for 2016", the inflation rate did not exceed the limits of the approved parameters and amounted to 5.7 percent. Large-scale work was carried out to reform and improve further the stability of the banking system of the country, which allowed achieving high international rating indicators.

The aggregate capital of commercial banks increased by 20.2 percent and amounted to 9.35 trillion soums during the reporting year as a result of measures taken to increase the level of capitalization of the banking system, further strengthening its liquidity and sustainability. By the end of 2016, the level of capital adequacy of the banking system had been almost 3 times higher than the international standards defined by the international Basel Committee, and its liquidity had been twice as high as the highest indicator estimates.

In 2016, the volume of bank deposits increased. The total volume of deposits of commercial banks in 2016 increased by 25.2 percent and amounted to 44.6 trillion soums. This, in turn, had a positive impact on increasing the volume of bank assets by 15.2 trillion soums or 23.3 percent, and as of January 1, 2017 it had reached 80.4 trillion soums.

UzReport