Tashkent, Uzbekistan (UzDaily.com) -- The Central Bank of Uzbekistan has revoked licenses for the right to carry out banking activities from Turkistonbank and Hi-Tech Bank. 

These banks ranked 26th and 29th, respectively, in terms of assets among banks in Uzbekistan.

The Board of the Central Bank made this decision in accordance with Article 20 of the Law "On the Central Bank of the Republic of Uzbekistan" for violations by these two banks, in particular:

▪️lack of sufficient reserves against possible losses on the bank’s assets;

▪️the bank incurs losses in excess of fifty percent of its regulatory capital;

▪️violation of the legal rights and interests of consumers of banking services;

▪️accounting with violations that do not reflect the real financial position of the bank and lead to a violation of reporting information;

▪️failure to comply with the Central Bank’s instructions on the elimination of gross violations in the activities of banks in a timely manner;

▪️repeated gross violations after the Central Bank imposed a fine for such violations.

The Central Bank approved the composition of the liquidation commission of Turkistonbank and Hi-Tech Bank, and on the basis of the Law “On Banks and Banking”, the powers to manage the bank, including the powers of the general meeting of shareholders, the supervisory board and the board, were transferred to this commission.

According to the Law of the Republic of Uzbekistan “On Guarantees for the Protection of Citizens’ Deposits in Banks”, deposits of individuals in banks are guaranteed by the Fund for Guaranteeing Citizens’ Deposits in Banks, in this regard, all funds of depositors in these two banks will be returned as a matter of priority in full after 2 months.

The return of deposits of the population is carried out by the Fund for Guaranteeing Deposits of Citizens in Banks in the manner prescribed by the above Law.