Tashkent, Uzbekistan (UzDaily.com) -- Uzpromstroybank established an underwriting system, the press service of the bank said.

The underwriting system ensures that the Bank considers the documentation of a loan allocated to legal entities and individuals, without unnecessary bureaucratic obstacles, in a short time. 

In order to ensure the implementation of the Decree of the President of Uzbekistan from 12 May  2020 on the Strategy for reforming the banking system of the Republic of Uzbekistan for 2020-2025, modern standards for the provision of services are being introduced in the Bank’s system.

The transfer of loan allocation based on the recommendations of the International Finance Corporation to a centralized underwriting system is a practical reflection of the work in this direction.

Underwriting, which has recently been widely introduced into modern banking practice, is a system that includes a number of procedures for analyzing the financial condition of a potential loan recipient and his ability to cover a loan.

Underwriting ensures the transparency of the loan allocation process, creates an opportunity for responsible persons to make a loan decision on the basis of the principle of objectivity, without participation of personal interests. This will serve to prevent corruption in the loan allocation processes.

As a result of the implementation of the underwriting system in Uzpromstroybank, a multi-stage system of consideration and issuance of an opinion on credit documents of the Bank’s clients is excluded, their submission to the discussion of the branch commission is canceled.

It is planned that from January 2021, the decision on modular loans for small businesses and private entrepreneurs will be made by a group of the Bank’s underwriters.

It should be noted that in order to create even more favorable conditions for customers in the Bank’s system and provide them with attractive types of loans, the stages of loan allocation have been reduced from 6 to 3, the terms, based on the cost and purpose of the project, from 10 to 1 day, based on the form of ownership enterprises, purpose of the loan, type of activity, introduced a number of new credit products.

It should be emphasized that in Uzpromstroybank, together with the International Finance Corporation, transformation processes are being carried out aimed at transforming the Bank into a financial institution that fully meets international standards. At the same time, customer focus of banking services is one of the main criteria.