Central Bank of Uzbekistan Approves “Roadmap” for Banking Sector Reforms

Tashkent, Uzbekistan (UzDaily.com) — The Central Bank of Uzbekistan (CBU) has announced the launch of a “Roadmap” for 2025–2028 aimed at improving the regulation and supervision of commercial banks.

The program was developed based on a comprehensive assessment of the country’s financial sector conducted by the International Monetary Fund (IMF) and the World Bank under the Financial Sector Assessment Program (FSAP) in 2024–2025. This was the first time FSAP covered Uzbekistan and resulted in the publication of reports including the Financial System Stability Assessment (FSSA), the Financial Sector Assessment (FSA), and the Basel Core Principles (BCP) compliance report.

Under the roadmap, the CBU will revise the capital adequacy requirements for banks to align with Basel III standards, including the implementation of capital buffers: conservation, countercyclical, and for systemically important banks.

Rules for asset quality classification and the formation of reserves to cover potential losses will be updated in accordance with Basel standards and IFRS 9. Full harmonization of Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) calculations is planned, along with the introduction of minimum requirements for financial and supervisory disclosures.

Systemically important banks will be required to establish risk management committees, implement Internal Capital Adequacy Assessment Processes (ICAAP), conduct stress testing, and assess risks associated with state-owned enterprises and climate-related factors.

The CBU plans to integrate climate-related financial risk management into supervisory processes, introduce the Analytical Data Repository (ADR) system, improve reporting mechanisms, and strengthen oversight of banks’ operational resilience.

The roadmap also envisages the creation of a bank resolution framework, including recovery plans, early warning systems (EWS), and prompt corrective action (PCA) mechanisms. Additionally, a Financial Stability Council is planned to be established.

The measures are scheduled for implementation over 2025–2028, with timelines subject to adjustment based on the nature of tasks. These steps are designed to enhance the resilience of Uzbekistan’s banking system and integrate it into international standards.