The Central Bank regulated microfinance activities

The Central Bank management has made an important decision in the financial sector by approving a new regulation governing the activities of microfinance organizations and banks. This was reported by Zamin.uz.

This document sets the requirements and rules to be followed when changing the operational direction of financial institutions. From now on, a microfinance organization can transform into a microfinance bank, a microfinance bank can become a full bank, a bank can switch to the status of a microfinance bank, or a microfinance bank can continue operating as a microfinance organization.

If a microfinance organization wishes to become a microfinance bank, it must be established as a joint-stock company. According to the new regulation, the establishment of a microfinance bank is carried out in two stages: initial permission issuance and bank registration along with license provision.

Banks, microfinance banks, or microfinance organizations apply to the Central Bank with an electronic application to change their type of activity. Applications are reviewed in accordance with the laws "On Banks and Banking Activities" and "On Non-bank Credit Organizations and Microfinancing Activities".

There are also fees established for application review. The fee for the initial permission is five times the base calculation index (BHM), and for the license, a payment equal to 0.1% of the minimum charter capital is charged.

For license reissuance, half of this amount is paid. This new procedure aims to increase transparency in the financial market, strengthen the system, and make the transition processes more orderly.

Source: zamin.uz