Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan has introduced a new procedure for classifying the quality of bank assets and forming provisions to cover potential losses.
The Ministry of Justice registered the relevant departmental regulatory document on 10 September 2026 under registration number 3937.
The document sets rules for classifying assets and forming and using provisions for potential losses at banks, including microfinance banks and banks conducting Islamic banking activities.
Assets will be assigned to one of five quality categories: “standard”, “substandard”, “unsatisfactory”, “doubtful” and “loss”. Provisioning requirements for the respective categories are set at 1%, 10%, 25%, 50% and 100%.
Classification will take into account criteria based on objective factors and the likelihood that obligations will be repaid. If assessments based on different criteria produce different results, the asset will be assigned the lower quality category.
Separate criteria have been established for assets provided to banks, non-bank credit organisations, insurance companies and leasing companies.
To improve the quality of restructured assets, established conditions must be met and a probationary period of at least six or 12 months must be completed.
Provisions must be reviewed at least once a month.
Starting from 1 January 2028, troubled assets will be assigned a “non-accrual” status. Accrued but unpaid interest and other income will be transferred to off-balance-sheet accounts.
The transfer of assets to off-balance-sheet accounts against formed provisions, as well as their write-off, will not terminate the underlying debt obligations.
