President of Uzbekistan Islam Karimov signed a resolution on 7 November to raise minimal requirement of the charter capital of the banks from 2008.

The resolution "On measures on further development of banking system and attraction of free funds to banking turnover" said it was adopted to further reformation and liberalization of banking system, increase competitiveness, financial sustainability, decrease off-banking turnover, etc.

The document said the assets and aggregate capital of the commercial banks increased by 7.6 and 7.4 times respectively compared to 2000. The volume of deposits grew by 38 times and credit investments of the commercial banks to real sector of economy by five times in the reporting period.

The resolution adopted programme on further reformation and development of banking system of Uzbekistan in 2007-2010 and the complex measures on further attraction of free funds to banking turnover and ensure growth of cashless money turnover.

The document approved proposal of the Central Bank of Uzbekistan and commercial banks to set new minimal size of the commercial banks’ authorized capital from 1 January 2008. The resolution said the minimal size of the commercial banks will be set at the volume of 5 million euros in soum equivalent. The charter capital of the private banks will be set at 2.5 million euros in soum equivalent.

The commercial banks, holding license to carry out banking activities, can work in securities market as investment intermediate, investment assets manager and investment consultant, the document said. It added the banks will not need to obtain additional licenses to be involved in the securities market.

The Central Bank, commercial banks, credit unions, micro credit organizations and insurance companies were entrusted in a month-term to expand number of their branches in regions and attract funds of businesses and individuals to deposits and issue of credits to businesses, farmers and population.

The Uzbek President Islam Karimov provided three-year income tax holidays to legal entities to income received from investment to deposits and long-term securities of the commercial banks from 1 January 2008.