Tashkent, Uzbekistan (UzDaily.com) — The Legislative Chamber of the Oliy Majlis has approved the draft law "On the Rehabilitation and Liquidation of Banks" in its second and third readings, the lower house’s press service reported.

The document establishes the legal framework for regulating the rehabilitation and liquidation of financial institutions.

Its primary objective is to protect the interests of depositors and creditors, ensure the uninterrupted operation of the banking system, and maintain financial stability.

The Central Bank is designated as the authorized body responsible for overseeing the rehabilitation and liquidation processes.

The draft law outlines the key goals of rehabilitation, financing mechanisms, and instruments used within this process. It also sets forth rules for voluntary and compulsory liquidation of credit institutions.

Lawmakers emphasized that the adoption of this law will reduce the banking sector’s reliance on state budget funds and enhance public confidence in the financial system.

The document has now been submitted to the Senate for further review. If approved, it will require the president’s signature to become law.