World Bank inspects the draft law “On banks and banking activity” developed by the CBU

A group of experts from the World Bank is carrying out an examination of the draft law “On banks and banking activity” developed by the Central Bank of Uzbekistan, Kun.uz correspondent reports referring to the press service of the Central Bank.

The development of the law “On banks and banking activity” in a new edition was initiated taking into account the key importance of a strong and efficient banking sector. It ensures the economic growth in a rapidly developing market, as well as on the basis of the global trend, increases the role and importance of regulators in securing the stability of the banking system.

In particular, the draft law envisages the improvement of prudential banking supervision. It will include the authority of the Central Bank to apply reasoned judgment, as well as early response measures in the implementation of risk-based supervision.

The draft law also assumes the establishment of increased requirements for the level of competence and business reputation of shareholders, members of supervisory boards and executive management.

Moreover, the draft law aims to significantly expand the availability of banking products. In this regard, banks will be given a right for outsourcing - the provision of 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 the balance between creating conditions for the accelerated development of banking services in conjunction with the implementation of proper risk-management of associated risks.