Senators discuss report on activities of Central Bank in 2015

07.04.2016

Senators discuss report on activities of Central Bank in 2015

UzReport.uz

The fifth plenary session of the Senate of Oliy Majlis of the Republic of Uzbekistan continued its work on April 1, 2016.

The second day of the plenary session the senators began work with a status report on the activities of the Central Bank of the Republic of Uzbekistan in 2015. It was noted that the activities of the Central Bank for the previous year was carried out in accordance with the Law "On the Central Bank of the Republic of Uzbekistan" and was aimed at the unconditional fulfillment 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 results of socio-economic development in 2014 and major priority directions of economic program for 2015, and the relevant resolutions of the Senate of the Oliy Majlis adopted in the previous reports of the Central Bank.

According to senators, in the reporting year, as a result of measures on the increase of capitalization of banks, strengthening liquidity and growth of the deposit base, high ratings and growth of volumes of investments into the real sector of the economy were achieved. Achieved in the banking system indicators are not only consistent with international generally accepted standards, but also exceed some of them.

The past year saw further strengthening of the banking system, an increase of the level of capitalization and expansion of investment activities of banks. Aggregate capital of banking system in comparison with 2014 increased to 23.3 percent and reached 7.8 trillion soums. Over the past 5 years, this indicator has been increased by 2.4 times. The capital adequacy ratio of the banking system of the country is almost 24%, which is 3 times higher than the generally accepted minimum international standards established by the Basel Committee and its liquidity – twice higher than the highest indicator ratings.

Total assets of banks in the reporting year increased by 25.1 percent and as of 1 January 2016 amounted to 65.2 trillion soums.

Monetary policy in 2015 contributed to the level of inflation calculated by the consumer price index (CPI). Compared to 2014, the inflation rate (6.1 percent) decreased by 0.5 percentage point and amounted to 5.6 percent.

The total volume of loans channeled by the commercial banks towards the real sector of the economy rose by 27.3 percent. The loans granted at the expense of internal funds in the total amount of credit portfolio of commercial banks comprised 86.7 percent, of which 79.8 percent – long-term loans for investment purposes.

The expansion of the volume of investment loans for the modernization of economy branches and investment projects, technical and technological re-equipment were of great importance. In 2015, the commercial banks for these projects allocated loans in the amount of 10.2 trillion soums, which is 20 percent more compared with 2014.

At that, a financial and economic stability was ensured, as a result of implementation of the investment policy of the banking system through supporting modernization and technical and technological renewal of the economy, a sharp rise of its competitiveness, increase of the export potential, organization of new productions based on innovative and energy-saving technologies, the development of the production of demanded in the world market new products.

During the reporting period, the amount of allocated loans to small business entities compared to 2014 increased by 1.3 times.

Particular attention was paid to the financial support of business projects of graduates of professional colleges. To start their own business and practice acquired modern skills and knowledge they were allocated 280 billion soums, or 1.3 times more than in 2014.

The range of the banking services is expanding from year to year. Thus, the volume of rendered services to clients in the past five years has grown by 3.5 times, including in 2015 – 1.3 times.

The stability of the banking system, the growth of confidence, increase in incomes were the key to attracting the free funds of the population and economic entities into deposits.

The reforms carried out in the banking system in 2015, became a major factor in ensuring a stable high rate of growth of the economy and increased welfare of the population.

The positive results achieved in the banking system of the Republic have also been reflected in the ratings of international rating agencies. In the past six years, the rating Agency “Moody's” has been assigning the Uzbek banking system a rating of “Stable".

According to the World Bank, Uzbekistan is currently in the first TOP ten countries in the world, which last year achieved the best results in improving the business environment for entrepreneurial activity. In particular, in the ranking "Doing business" by such criteria as "supporting new businesses" and "loans towards small businesses" Uzbekistan over the past three years has risen from 154-th to 42-nd place, having improved just in the last year its rating at 63 positions.

It was noted that this year the Central Bank of the Republic of Uzbekistan has continued to pursue its prudent monetary policy, efforts have been made to increase the capital of the banking system, to ensure the volume of deposits of the population and businesses in banks, wide application of information and communication technologies and the amount of rendered banking services, as well as the introduction of new recommendations of the international Basel Committee into the banking supervision system.

During the discussion of the report, senators expressed their proposals and recommendations aimed at further improving the activities of the Central Bank of the Republic of Uzbekistan. In particular, it is recommended to increase the effectiveness of supervision of banks and other financial institutions for the purpose of maintaining the stability of the financial and banking system, protection of interests of depositors, borrowers and creditors, to strengthen the resource base of banks at the expense of attraction of funds of the population and economic entities on long-term deposits, stimulate the development of small business and private entrepreneurship, increase the investment activity of banks, as well as the financing of projects under programs of socio-economic development of regions.

UzReport.uz

7.1. Plastic card of legal entity and individual entrepreneur (corporate card) in national currency
7.1.1 Issue of 3-year main/ additional card	80,000 UZS, including VAT
7.1.2 Extension of the validity of main/ additional card	80,000 UZS, including VAT
7.1.3 Reissue of main/ additional card in case of loss/ damage	80,000 UZS, including VAT
7.1.4 Reissue of main /additional card in case of technical malfunction	no commission fee
7.1.5 Penalty for loss/damage of main/ additional card	80,000 UZS, including VAT
7.1.6 Balance replenishment on the special Uzbek Soum card account of legal entity/individual entrepreneur (according to the applicable legislation)	0.5% of the amount transferred
7.1.7 Submission of the statement on money accounting on the corporate card	50,000 UZS, including VAT
7.1.8 Card registration in the stop list	no commission fee
7.1.9 Leasing of payment terminals to trade and service enterprises for accepting payment from UZCARD plastic cards and International payment cards, including:
a) to legal entities	25,000 UZS + VAT (charged monthly, on the first business day of the month following the month of the transaction)
b) to individual entrepreneurs	15,000 UZS + VAT (charged monthly, on the first business day of the month following the month of the transaction)
c) to Home Unit Companies	25,000 UZS + VAT (charged monthly, on the first business day of the month following the month of the transaction)
7.1.10 Processing of HUMO payment cards transactions of trade and service enterprise (acquiring)	0.2% of the transaction amount
7.2 Bank card of legal entity and individual entrepreneur in foreign currency (international)
7.2.1 Issue (emission) of main / additional card
a) Visa Business	UZS 230,000, including VAT
- minimum balance and down payment (unchanged until the card account is closed)	USD 100
b) Visa Business to an individual entrepreneur	UZS 170,000, including VAT
- minimum balance and down payment (unchanged until the card account is closed)	USD 100
c) Masterсard Business	UZS 1,200,000, including VAT
: For MasterCard, if the card currency differs from the transaction currency, the amount of 2% will be temporarily blocked
7.2.2 Reissue of main / additional card (after expiration of the card, to change the client's name, in case of card loss/damage, password loss, suspicion of fraud):
a) Visa Business	UZS 230,000, including VAT
b) Visa Business to an individual entrepreneur	UZS 170,000, including VAT
c) Masterсard Business	UZS 600,000, including VAT
7.2.3 Penalty for loss / damage of main / additional card, and for the card non-return by the client to the bank, including when applying for closing the special card account:
a) Visa Business	UZS 230,000, including VAT
b) Visa Business to an individual entrepreneur	UZS 170,000, including VAT
c) Masterсard Business	UZS 600,000, including VAT
7.2.4 The processing of transactions on cash receipt at terminals or ATMs abroad the Republic of Uzbekistan from the card issued by the National Bank	1% of the amount
7.2.5 Processing of transactions on non-cash payment for goods and services in the infrastructure of another bank (terminal/imprinter/ATM/self-service terminal/Internet, etc.) from the card issued by the National Bank:
a) Visa Business	no commission fee
b) Visa Business to an individual entrepreneur	no commission fee
c) Masterсard Business	No commission fee
Note: For MasterCard, if the card currency differs from the transaction currency, the amount of 2% will be temporarily blocked
7.2.6 Registration of the card in the Global stop list upon the Client's request	no commission fee
7.2.7 Reimbursement of expenses for the withholding by another bank of the card issued by the National Bank	1,15 Basic Estimated Amount, including VAT
7.2.8 Reimbursement of expenses for the transfer by the acquiring bank of the withheld card issued by the National Bank	Postal and telegraph expenses
7.2.9 Submission of an international card account statement on the official letterhead of the Bank	UZS 60,000, including VAT
7.3 For trade and service companies serving clients with cards in foreign currency
7.3.1 Processing of transactions of retailer and service outlet using international cards (VISA, MasterCard, UnionPay International, etc.):
a) Through a POS terminal in a trade and service enterprise and an EPOS terminal (according to an e-commerce project): - for cards issued by NBU JSC; - for cards issued by other banks of Uzbekistan; - for cards issued by foreign banks	1% of the transaction amount on the day of receiving coverage from international payment systems; 1.5% of the transaction amount on the day of receiving coverage from international payment systems; 3% of the transaction amount on the day of receiving coverage from international payment systems
b) Via a POS terminal installed in hotels	2.5% of the transaction amount on the day of receiving coverage from international payment systems
7.3.2 Penalty for the recovery of information on transactions against supporting documents submitted by the trade and service company	1% of the transaction amount
7.3.3 Penalty for loss and/or damage of payment terminal which can not be repaired	Actual cost of the terminal + 1,15 Basic Estimated Amount, including VAT
7.3.4 Processing (acquiring) of transactions of trade and service enterprises using HUMO/UZCARD payment system
a) On international cards through the payment system "UzCard"	0,2% of the transaction amount
b) VISA, MasterCard and UPI international cards, through HUMO payment system. When servicing international cards (VISA and MasterCard), a commission of 1.5% is charged from the card account in addition to the commission fee specified in this section. Visa cards issued in the Republic of Uzbekistan are the exception.	1% of the transaction amount. When servicing international cards (VISA and MasterCard), a commission of 1.5% is charged from the card account in addition to the commission fee specified in this section. Visa cards issued in the Republic of Uzbekistan are the exception.
c) VISA, MasterCard and UPI international cards, through UzCard payment system. When servicing international cards (VISA and MasterCard), a commission of 2% is charged from the card account in addition to the commission fee specified in this section. Visa cards issued in the Republic of Uzbekistan are the exception.	1% of the transaction amount
d) MIR international cards, through UzCard payment system	0.5% of the transaction amount
e) For payment transactions for products, works and services at trade enterprises using ‘Tez QR’ through ‘UZCARD’ payment system Effective from May 1, 2024.	1% of amount
7.3.5 Processing transactions of a merchant conducted through the NBU's E-POS terminal*
a) By UzCard Sumy Plastic Cards	0,8% of the transaction amount
b) By HUMO / Visa UZS plastic card / UZS electronic wallet	0,5% of the transaction amount
7.3.6 The processing of transactions of retailer and service outlet via QR-Online system	0,15% of the transaction amount
*When the retail and service outlet pays for this service, the commission specified in subparagraph 5.1.12 of section 5 “Remote Services” of the tariff for commission fee for individuals is not charged to the client
7.3.7 Processing of transactions of the trade and service enterprise carried out on local cards (UzCard, HUMO, etc.), according to the e-commerce project	at least 1% of the transaction amount
7.3.8 Connection (registration) to the fiscal module and servicing online cash registers	1% of the amount
7.3.9 Monthly rent for commercial terminals of small business entities (with a monthly turnover of more than 100 000 UZS)	fee is not charged
7.3.10 Monthly rent for trading terminals of small business entities (with a monthly turnover of less than 100 000 UZS) Terminals inactive for 6 months are withdrawn from the client	15% BEA, including VAT
Tariffing begins on June 10, 2024.

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Senators discuss report on activities of Central Bank in 2015