The key facts

  • The CBU Banking Supervision Committee held six meetings in October and considered 43 issues
  • Six banks and two MFOs were fined for violating prudential standards and legislation
  • One more bank and one MFO were warned of possible future measures; in September, eight banks were fined

Outcomes of the supervisory committee's October meetings

The Banking Supervision Committee of the Central Bank of Uzbekistan in October fined six banks and two microfinance organizations — the regulator's press service reported this, and Spot.uz and Zamon.uz drew attention to the October inspection results. The sanctions were imposed for non-compliance with legislation and prudential standards, as well as for violations identified during on-site inspections. In addition to those fined, one more bank and one MFO received warnings about the possibility of measures and sanctions being applied to them in the future.

What the committee considered

Over the month, the committee held six meetings and considered 43 issues. Of these, 23 concerned registration and licensing procedures: registration of amendments to the charters of credit organizations, registration and accreditation of microfinance organizations, licensing of payment organizations, issuance of auditor qualification certificates, permits to own shares in the charter funds of credit organizations, as well as the review of candidates for supervisory boards and boards of commercial banks and for key positions.

Financial condition and the 'sandbox'

Another 20 issues concerned the financial condition of credit and payment organizations. Particular attention was paid to compliance with CBU directives and prudential standards, the results of on-site inspections at banks and non-bank credit organizations, as well as the testing of financial services within the 'regulatory sandbox'.

Comparison with September

A month earlier, the committee held eight meetings and considered 16 tasks; as a result of the September inspections, eight banks were fined. Thus, in October the number of fined banks decreased from eight to six, but for the first time in this period the sanctions also affected microfinance organizations. The regulator did not disclose the names of the fined organizations or the amounts of the fines. Separately, Spot.uz previously reported that the CBU demanded an objective investigation into complaints about problems with cash withdrawals at ATMs.