Central Bank of Uzbekistan Plans Risk Buffer and Microloan Income Floor

Tashkent, Uzbekistan (UzDaily.uz) — The Central Bank of Uzbekistan is considering the introduction of a systemic risk buffer for banks and the establishment of a minimum monthly income threshold required to obtain a microloan. These steps are listed among the measures to mitigate key risks in the regulator's financial stability review for 2025.

The systemic risk buffer is named among the responses to a potential tightening of global financial conditions due to geopolitical tensions. According to the Central Bank, such a scenario would complicate the raising of funds from international markets, increase the cost of servicing external debt, and raise the cost of financing the budget deficit. Other measures in the same bloc include strict compliance with the established ceiling on the consolidated budget deficit, attracting foreign direct investment, developing the domestic capital market, and diversifying foreign trade logistics.

A separate package of measures is directed at microloans, the credit risk of which the regulator classifies as a primary domestic threat. The Central Bank intends to eliminate exemptions that allow the issuance of loans without factoring in the debt service-to-income ratio. It also plans to establish a minimum monthly income requirement for receiving a microloan based on minimum consumer expenditures. This decision was prompted by the deteriorating quality of the segment, as microloans are issued without target-use and collateral requirements while the number of borrowers and their debt burden grow.

In response to cyber risks, the regulator plans to deploy an artificial intelligence-based monitoring system for suspicious transactions and introduce restrictions on such operations. It also requires financial system participants to improve information protection and raise the financial literacy of the population regarding cyberattacks and fraud.

To evaluate climate threats, the Central Bank is preparing a climate stress-testing tool that will demonstrate the impact of physical and transition risks on the financial position of banks.

Part of the macroprudential toolkit has already been deployed. Direct loan-to-value limits have been in effect since 24 July 2025, capping mortgages at no higher than 85%. Furthermore, Basel III capital requirements have been implemented in full, including a capital conservation buffer of 2.5%, a countercyclical buffer of 1.5%, and an additional requirement of 1% for systemically important banks.