NEWS AND EVENTS
July 27, 2012
Standard & Poor\'s: capitalization of Uzbek banks corresponds rates of economic growth
More than 200 managers and senior officials of the banking system of Uzbekistan took part in an international workshop held in Tashkent.
The event was organized by the Central Bank of the Republic of Uzbekistan jointly with Standard & Poor\'s international rating agency within the presidential decree \"On the priority directions for further reforming and improving the stability of the financial and banking system of the Republic in 2011-2015, and to achieve high ratings\", and devoted to the discussion of topical issues of banking system of Uzbekistan.
Opening the seminar Shukhrat Haydarov, Deputy Chairman of the Central Bank of Uzbekistan and John Gibling, Managing Director of \"The ratings of financial institutions\" of Standard & Poor\'s, noted existing prospects for further cooperation on ways to improve the stability of the financial and banking system of Uzbekistan, and boost organization of banking activities in accordance with generally accepted international norms.
Today, Standard & Poor\'s assigned ratings to 9 banks of the Republic of Uzbekistan, including the National Bank, Halq Bank, Uzpromstroybank, Ipoteka Bank, Kapitalbank, Orient Finance Bank, Amirbank, OJSCB Samarkand, Turkiston Bank.
\"In the fall 2011 ratings of four banks in the Republic of Uzbekistan have been increased by one rating level due to the introduction of new criteria. These rating actions may serve as proof that as the international rating agency, showing a great interest in this region, we try to objectively assess the strengths and weaknesses of financial institutions, resulting in a change of our ratings,\" Sergey Voronenko senior analyst of the \"Financial Institutions Ratings\" Standard & Poor\'s said during the event.
In his report \"The ratings of banks of Uzbekistan in the international context\", Sergey Voronenko described in detail the characteristics of the banking sector in Uzbekistan.
Among the positive factors have been noted strong public support of real sector of the economy, relatively low debt burden and the state sector, as well as the growth potential of the banking sector, its stability and it is an adequate rate of economic growth in the level of bank capitalization.
As of July 1, 2012 the total capital of the banking system of Uzbekistan increased by 24.2 percent over the same period of 2011, total assets of banks - by 30.3 percent, attracted deposits from customers to banks - by 30.5 percent. The growth of the resource base of commercial banks increased the volume of lending of the real sector of the economy by 1.3 times. At the same time, long-term credit investments for over one year also increased by 30.5 percent.
On the implementation of modernization, technological and technical re-equipment of production were allocated credits worth more than 2.6 trillion soums (official exchange rate 1USD=1900,62 UZS) with an increase of 1.3 times. In general, the implementation of measures to improve the competitiveness of the banking sector was reflected in the growth of gross domestic product by 8.1 percent over the same period last year.
The seminar also presented criteria of assessment of banks, updated in the light of the global financial crisis. Analytical tools of rating agencies – the updated methodology was presented by Yulia Kozlova, credit analyst, Standard & Poor\'s, who said: \"The new elements of control that were implemented after previous crises, such as deposit insurance, did not help prevent future recessions. Given this experience, we would like to see the recent lessons of the economic recession are not forgotten as the economy recovers in subsequent periods of favorable market conditions conducive to the achievement of high levels of bank profits. New criteria allow a greater degree of understanding, as it takes into account the influence of government in our credit analysis.\" (Source: UzReport.com)