Baku, Azerbaijan, Nov. 22
By Fikret Dolukhanov – Trend:
A group of the World Bank experts is examining the draft law “On Banks and Banking Activities” developed by the Central Bank of Uzbekistan (CBU), Uzbek media reported referring to the press service of the CBU.
The development of the new edition of the law was initiated taking into account the key importance of a strong and efficient banking sector in ensuring economic growth in a rapidly expanding market, and also based on the global trend to increase the role and importance of financial regulating bodies in ensuring the stability of the banking system.
In particular, the draft law provides for the improvement of prudential banking supervision, which will include the authority of the CBU to apply reasoned judgment, as well as early response measures in the implementation of risk-based supervision.
The draft law also provides for the establishment of increased requirements for the level of competence and business reputation of shareholders, members of supervisory boards and executive management.
The draft law also aims at significantly expanding the availability of banking products, in connection with which banks will be granted the right to outsource, i.e. to provide certain types of banking services through agents. At the same time, special attention is paid to stimulating the development of financial technologies in banks and ensuring information security.
In general, the draft law is designed to ensure a balance between creation of conditions for the accelerated development of banking services and introduction of proper risk management.
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