Central Bank warns commercial banks over unfair loan sanctions

The Central Bank of Uzbekistan has issued a notice to commercial banks cautioning that certain measures applied for overdue loan and microloan repayments may violate principles of fairness and proportionality.

In a letter sent on 20 January 2026, the regulator highlighted concerns over sanctions and fees that some banks impose when borrowers delay payments. According to the Central Bank, analysis of current practices revealed several issues:

Interest rates for late payments were in some cases increased several times above the annual rates stipulated in contracts, reaching as high as 150–180% per year.
Some banks applied daily penalties without specifying a maximum limit.
One-time fines were imposed that were unrelated to the lender’s actual costs.

The Central Bank emphasized that measures applied for delayed payments should not serve as a source of revenue for banks but rather as a compensatory mechanism. It underscored that banks must strictly adhere to the principles of fairness and proportionality when enforcing repayment measures.

The warning signals the regulator’s commitment to protecting borrowers’ rights and ensuring that commercial banks’ practices remain consistent with legal and ethical standards.