CBU Explains Reasons for Delay in Revoking Yangi Bank’s License

Tashkent, Uzbekistan (UzDaily.com) — The delay in revoking the license of Yangi Bank was due to shareholder plans to increase the bank’s charter capital and attempts to sell the institution, Timur Ishmetov, Chairman of the Central Bank of Uzbekistan, stated at a press conference on 28 January.

According to Ishmetov, the closure of any bank is “a very painful matter,” which is why the regulator seeks to implement measures to stabilize financial institutions and minimize impact on the banking sector. The Central Bank granted Yangi Bank additional time to raise its charter capital to the minimum required level of 500 billion soums, effective since 2025.

“The shareholders of Yangi Bank presented plans in early 2025 to increase capital in the first half of the year using dividends from other businesses. We supported the continuation of the bank’s operations; however, the capitalization was never completed, and the financial condition continued to deteriorate,” Ishmetov noted.

He clarified that the license was ultimately revoked while the bank’s assets still exceeded its liabilities. Some of these assets are liquid and can be sold to other banks, while others are less liquid. Negotiations with potential investors were conducted, but a new owner was not found. Extending the deadline further could have resulted in insufficient assets to meet obligations.

Ishmetov added that a registry of depositors has been established. The Deposit Insurance Agency will reimburse individuals up to 200 million soums within 15 days, while remaining obligations will be covered by the liquidation committee through asset sales. The chairman emphasized that the bank will cease operations at a loss.

Yangi Bank has a total of 31,931 depositors, with aggregate deposits amounting to 396 billion soums. To date, 132 billion soums has been paid to individuals, and the remaining 76 billion soums will be disbursed through the agent bank, Bank for Business Development.

It is worth recalling that on January 15, the Central Bank revoked Yangi Bank’s license. The regulator had repeatedly sent written warnings to the bank regarding the need to increase its charter capital, but corrective measures were not implemented.

Uzbek legislation (Articles 54 and 77 of the Law “On Banks and Banking Activities”) stipulates license revocation in cases of noncompliance with minimum capital requirements or losses exceeding established limits.