1. Regulation and Supervision of Credit Unions in Uzbekistan
presented by
NIZOMIDDIN Muradov
Central Bank of the Republic of Uzbekistan
Baku, Azerbaijan
November 10-11, 2004

2. Credit Unions predominantly involved in the small and microbusiness;
offer loans both in cash and non-cash, time and saving deposits of different terms suitable to individual members;
terms of microloans: max 9 mo.;
popular: 3 to 6 mo’s
av. size of loans: $500 – $1,000
types of microloans: trading, agricultural, consumer
interest rates on loans: 5 to 7% a month
interest rates on deposits: 2 to 5% a month

3. Credit Unions: Results (as of Oct. 1, 2004)
20 credit unions registered;
number of members – 12,000
Membership growth - 15% a month.
Loans / Total Assets - more than 80%
Deposits/Assets - 70%

4. Overview of Regulatory Requirements for Credit Unions
Credit unions in Uzbekistan operate based on the following laws and regulations:
Law on Credit Unions;
Regulation on licensing and registration;
Regulation on financial transactions;
Regulation on accounting;
Chart of accounts.

5. Organizational Structure of CU Supervisory Body

6. Credit Union Supervision System in Uzbekistan
Central Bank has the right to:
Review reports and other documents of the credit union
Receive information on the activities performed by the credit union
Perform inspections of the credit union
Issue instructions on elimination of violations identified in the credit union operations and mandate their implementation

7. Credit Union Supervision System in Uzbekistan
Establish qualification requirements for the Chief Executive Officer
Impose restrictions on performing specified financial operations for the term not exceeding six months
Suspend or terminate the license issued to the credit union.

8. Required Regulatory and Supervisory Changes
Adding missing powers in the legislation and developing procedures for utilizing such powers.
Training Central Bank’s field staff in performing on-site supervision of credit unions based on the best practices in the field.
Improving co-ordination between on-site and off-site supervision.