Central Bank of Uzbekistan revokes licenses of two banks

As the press service of the regulator reported, in accordance with the resolution of the board dated October 7, 2022, the license for the right to carry out banking activities was revoked from the private joint-stock commercial bank “Turkiston” (Turkistonbank).

According to the Central Bank, “Turkistonbank” ranks 26th in the banking system of the republic in terms of assets.

The Board of the Central Bank made a decision in accordance with Article 20 of the Law “On the Central Bank of the Republic of Uzbekistan” for violations by “Turkistonbank” provided for in Articles 54 and 77 of the Law “On banks and banking activity”, in particular:

- lack of sufficient reserves against possible losses on the bank’s assets;
- losses in amounts exceeding fifty percent of its regulatory capital;
- violation of the legal rights and interests of consumers of banking services; 
- accounting with violations that do not allow to reflect the real financial position of the bank and lead to a violation of reporting information; 
- non-execution in due time of the instructions of the Central Bank to eliminate gross violations in the activities of banks;
- repeated commission of gross violations after the imposition of a fine by the Central Bank for such violations. 

The above resolution of the CB Board Bank approved the composition of the liquidation commission of “Turkistonbank” and on the basis of the law “On banks and banking activities”, the powers to manage the bank, including the powers of the general meeting of shareholders, the supervisory board and the board, were transferred to this commission.

Similar measures were accepted in relation to HI-TECH BANK. This bank ranks 29th in the banking system of Uzbekistan in terms of assets.

What should consumers do? 

According to the law “On guarantees for the protection of citizens’ deposits in banks”, deposits of individuals in banks are guaranteed by the Fund for Guaranteeing Citizens’ Deposits in Banks, in this regard, all funds of depositors in Turkistonbank and HI-TECH BANK will be returned as a matter of priority in full within 2 months.

The return of deposits of the population is carried out by the Fund for Guaranteeing Citizens’ Deposits in Banks in accordance with the procedure established by the above law.

Detailed information on the return of deposits can be obtained by calling the CB helplines (+99871) 200-00-44 and (+99871) 236-75-24.