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Sunday, August 25, 2019

Moody's gives Uzbekistan's banking system stable rating

Moody's international rating agency recently published a report confirming the Uzbek banking system as stable for the fifth consecutive year.

Moody's said the stable forecast is based on the high rate of economic growth in Uzbekistan and the considerable volume of investments. Uzbekistan's annual economic growth rates exhibited significantly lower volatility than growth in other CIS nations due to diversification, the Uzbekistan National News Agency reports.

The report found steady dynamics in the quality of assets of Uzbek banks, particularly the encouraging trends in capital investments, suggesting stability in the assets.

The total sum of assets of Uzbekistan's commercial banks increased by 30 percent in 2013. Uzbek commercial bank assets grew 3.6 times in the past five years. Targeted measures meant to boost the capitalization of the banking system also helped the aggregate capital of banks to grow 3.5 times during the same time period.

Uzbekistan's level of capital adequacy in the banking system is three times as high as the universal international standards.

Current liquidity in Uzbek banks exceeded 65 percent in the past few years, which is twice as much as the fixed minimum.

Moody's suggested that Uzbekistan's high economic growth rates will ensure a favorable operating environment for banks for the next 12-18 months, the Uzbekistan National News Agency reports.