Uzbekistan has adopted a law aimed at developing microfinance and creating new financial institutions. This was reported by the Ministry of Justice.
What will change?
The main innovation is the appearance of microfinance banks. These organizations will be able to provide services similar to banking, but within the limits established by law. This will expand the access of the population and small businesses to financial resources.
Flexibility for credit institutions
The new law also introduces the possibility of transformation between different statuses of financial institutions:
- A microfinance organization can become a microfinance bank.
- The microfinance bank will have the right to transform into a commercial bank.
- If necessary, a commercial bank can change its status to a microfinance bank.
- A microfinance bank can become a microfinance organization under certain conditions.
Role of the Central Bank
Licensing of new microfinance banks will be the responsibility of the Central Bank of Uzbekistan. These measures are expected to strengthen interaction between commercial banks and microfinance institutions, encouraging additional investment in the sector.
