Tashkent, Uzbekistan (UzDaily.com) -- In order to regularly assess the share of the private sector in banking assets, as well as the effectiveness of reforms and transformation processes in the banking sector, the Center for Economic Research and Reforms (CERR) has developed a "Bank Activity Index" for 31 commercial banks country. Based on this Index, CERR updates the rating of banks on a quarterly basis.

When calculating this Index, the indicators of banks were used in the following areas:

• Financial intermediation

• Financial affordability

• Capital adequacy

• Asset quality

• Management efficiency

• Profitability

• Liquidity

As of 1 December 2020, the assets of the banking system of the republic made up 366.1 trillion soums, liabilities - 307.8 trillion soums and capital - 58.4 trillion soums. Currently, 55,274 people work in the banking system.

Given the specifics of the banking sector, banks were divided into two groups:

1) large banks 2) small banks. For each of these groups, a rating was compiled separately.

Kapitalbank (1st place) and Hamkorbank (2nd place) are in the lead in the overall rating of the Activity Index of 17 large banks.

Strong results in financial intermediation, asset quality and liquidity ensured Kapitalbank the first place in the overall rating. In particular, the ratio of the bank’s term deposits to the total amount of loans was 85%. In addition, the share of funds received from other banks and financial institutions is 3%, and the share of funds received from the state is 0.5% in the structure of the bank’s liabilities, which is one of the lowest indicators. However, it should be noted that the capital adequacy rating indicates that Kapitalbank’s indicators in this area are close to the minimum requirements set by the Basel Committee.

Hamkorbank, which took 2nd place in the overall rating, was recognized as the leader in financial affordability. This is due to the fact that the number of legal entities and individuals receiving loans for one bank branch is relatively large. Hamkorbank is also one of the five largest banks in terms of profitability and liquidity. However, the results of the bank’s asset quality rating show that particular attention should be paid to reducing problem loans and reducing potential losses.

One of the largest banks with state-owned shares, Aloqabank took 3rd place in the overall rating. This bank has shown strong performance in financial intermediation, capital adequacy and asset quality. If the share of term deposits of the bank in the total volume of loans was 58%, which is higher than that of other state-owned banks, then the share of deposits and loans from other banks and financial institutions in total liabilities was 23%, and the share of borrowings from the state was 11%, which lower than the average indicators of the banking system.