Deposits in Credit Unions of Uzbekistan Reached 229 bn Soums
OREANDA-NEWS. February 02, 2011. A seminar for managers of nonbanking credit organizations and their associations was held in Tashkent. The seminar was organized by the Central Bank of Uzbekistan.
The event was dedicated to the tasks set before banking and financial system in accordance with the Concept for further deepening of democratic reforms and civil society development and report of the President of Uzbekistan at governmental session dedicated to results of socioeconomic development in 2010 and foreground directions for 2011.
It was noted during the event that banking and financial system of Uzbekistan proved its stability and its further strengthening is closely connected with attraction of private capital by forming legislative basis for establishment of such financial institutions as private banks, leasing and insurance companies, credit unions, microcredit organizations based on private property.
As of 1 January 2010 209 nonbanking credit organizations operate in Uzbekistan. Out of them 116 are credit unions, 35 – microcredit organizations and 58 - pawnshops.
This sector has been rapidly developing for the last years, there is a growth in aggregate assets. Thus, as of 1 January 2011 aggregate volume of credit portfolio of nonbanking credit organizations increased by 58% as against the same period of the previous year and amounted to 304 billion soums.
The activity of credit unions has an extreme significance for the savings market. Money resources mobilization fosters the formation of internal financing resources that play a crucial role in guaranteeing credit unions' independence and financial stability.
As of 1 January 2011 total sum of deposits attracted by credit unions made up 229 billion soums, 51% growth versus 2009. To be noted, 90% of credit unions' deposits are fixed term deposits, fact proving the funding base's stability.
To ensure further increase of nonbanking credit organizations and microfinance system stability, the Resolution of the President of Uzbekistan dated 26 November 2010 "On foreground directions of further reforming and increase of financial banking system stability in 2011-2015 and achievement of high international ratings" established measures for further development of this sector in 2011-2015.
Stimulation of the microfinancing as an important tool for financing the development of small business and private entrepreneurship, increase of the population employment and welfare is one of the principal directions of further increase of banking and financial sphere.
During the seminar the participants exchanged opinions on implementation of forecasted parameters of the financial and banking sphere, the quality of services, further development of microfinancing and nonbanking financing in the upcoming years.
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