Tashkent, Uzbekistan (UzDaily.com) — The Central Bank of Uzbekistan has clarified the amendments and additions made to the regulation "On Requirements for the Risk Management System of Banks and Banking Groups."

The decision of the Central Bank’s Board titled "On Amendments and Additions to the Regulation on Requirements for the Risk Management System of Banks and Banking Groups" was registered by the Ministry of Justice on 21 January 2025, under registration number No 3427-1.

These amendments and additions were developed to enhance the resilience of banks through effective risk management in the banking system and to further align risk management requirements with the "Core Principles for Effective Banking Supervision" established by the Basel Committee on Banking Supervision.

The document introduces improved requirements for managing credit, market, and operational risks. Additionally, it includes new regulations governing country risk management and interest rate risk in the banking book (IRRBB).

In particular, changes to credit risk management clarify the responsibilities of the bank’s supervisory board and provide detailed guidelines on the bank’s policies and internal procedures in this area.

The definitions of banking and trading portfolios have been refined, along with specific features for managing interest rate risks associated with these portfolios. For interest rate risk in the banking book, the regulation identifies its types, such as mismatch risk, basis risk, and option risk. It also outlines methods for managing these risks and scenarios for their assessment.

Furthermore, the document refines the categories of country risks, including transfer risk, sovereign risk, and contagion risk. It specifies the factors banks must consider when managing risks associated with foreign states.

The updates also introduce the concept of operational resilience. Requirements for ensuring this resilience have been established, including the development of recovery and business continuity plans for banks.

These changes aim to improve the risk management system in the banking sector and strengthen its overall stability.