September 4, 2023

The amount of banks’ charter capital will be gradually increased.

Based on the amendments to the Law of the Republic of Uzbekistan “On Banks and Banking Activity,” the amount of banks’ charter capital will be gradually increased.

On 19.04.2023 President of the Republic of Uzbekistan Shavkat Mirziyoev signed amendments to the Law of the Republic of Uzbekistan “On Banks and Banking Activity” № ZRU-580. The amendments were introduced in order to increase the level of capitalization of banks further and increase their resource base, expand their participation in the processes of structural transformation of the economy, as well as attract foreign investment in the banking sector.

By virtue of the adopted amendments, firstly, the minimum amount of the charter capital of banks in the territory of the Republic of Uzbekistan in four stages will be increased from 100 billion soums to 500 billion soums, by 2025. The minimum amount of the authorized capital of a bank shall be:

• before September 1, 2023 – 100 billion soums;
• from September 1, 2023 –  200 billion souls;
• from April 1, 2024 – 350 billion soums; and finally
• from January 1, 2025 – 500 billion soums.

Secondly, the founders and shareholders of the bank may not be:

• legal entities and individuals registered, residing in the state or territory providing favorable tax regime; and (or)
• persons who do not provide for disclosure of the identity of the ultimate beneficial owner and provision of information when conducting financial transactions (except for legal entities and individuals who acquired the bank’s shares on foreign stock markets).