The Central Bank said the capitalization of the largest commercial banks in Uzbekistan carried out to stimulate crediting of basic industries of the economy, not to support liquidity of the banks as in other states.

Aggregate capital of the banking system grew by 1.5 times year-on-year to 2.335 trillion soums as of 1 July 2009, the Central Bank said.

Over 490 billion soums were directed to charter capitals of the commercial banks and part of these investments were directed to finance investment projects, like modernization of Uzbekenergo, Navoi Mining and Metallurgy Combine, etc.

Current liquidity of the banking system is also at sufficient level and it makes the Uzbek banking system as one of reliable and stable partners in international arena, the Central Bank of Uzbekistan said.

The bank said current liquidity of the banking system exceeds US$1.7 billion, which is up 10 times compared to the current liability of the banks on external debts. “Security cushion” of the banking system makes up 1.41 trillion soums.

The Uzbek financial market regulator said bad credit level did not exceed 3% at acceptable level of 4%. The bank said this figure will not exceed 2% till the end of 2009.

Income of the banks grew 1.7 times year-on-year in January-June 2009, while it is expected that income of the banks will increase twice in 2009 compared to 2008, the bank said.

The Central Bank said the main growth of the banking system was ensured due to internal resources - deposits of population and legal entities. At the result of the first half of 2009, foreign loans in total resources of the commercial banks exceeded 6.6%. Foreign loans attracted to modernize economy and support small and private businesses.

Uzbek commercial banks attracted 7.178 trillion soums of deposits, which is up 1.7 times year-on-year. Deposits of population at credit organizations grew 1.8 times to 2.19 trillion soums, the Central Bank said.

Assets of the commercial banks of Uzbekistan reached 14.865 trillion soums, which exceeds attracted deposits twice.

Aggregate long-term investment credits in total loan portfolio of the banks comprised 70%. The bank issued 1 trillion soums as investment credits, which is up 1.6 times year-on-year.