The first microfinance bank started operating in Uzbekistan

A new player has appeared in Uzbekistan's financial sector: the country’s first microfinance bank – “Tayanch” – has begun operations. This occurred after Uzbekistan’s Central Bank issued a license on October 24 to the joint stock company “Tayyab Finance Microfinance Organization”.

As a result of this process, the “Tayyab Finance” microfinance organization was reorganized as a microfinance bank and renamed “Tayanch”. Currently, the Central Bank is making the necessary changes to enter this organization’s new status into the state register.

This process began in July, when “Tayyab Finance” was one of the first organizations to receive preliminary approval to become a microfinance bank. To adapt to its new status, the company significantly increased its charter capital.

According to the unified register of state enterprises and organizations, the bank, initially registered in October 2022 in the Sergeli district of Tashkent city, increased its charter capital from 13.9 billion soums to 53.9 billion soums. The bank’s founders, Alvira Faritovna Hanipova and Akbarbek Rovshanbek ogli Mustaqimov, each own a 50% share.

The establishment of this new type of financial institution became possible due to a law signed by President Shavkat Mirziyoyev in February. This law created a legal framework for the activities of microfinance banks, and it is expected that they will bridge the gap between microfinance organizations and traditional commercial banks.

The legislation set clear requirements for new market players. For microfinance banks, the minimum charter capital was set at 50 billion soums.

They have the right to accept deposits of up to 200 million soums from the population and to issue loans of up to 5 billion soums. One of the most important requirements is to support small businesses: at least 70% of such banks’ credit portfolios must be directed toward financing micro and self-employed citizens.

According to fintech expert and PayWay co-founder Behzod Botirov, the emergence of microfinance banks will stimulate entrepreneurship and have a positive impact on the banking sector. The establishment of microfinance banks in Uzbekistan is part of a comprehensive strategy to increase the accessibility of financial services.

According to statistical data, the country’s microfinance services market is showing significant growth, which indicates a high demand for credit products among the population and small businesses. Read “Zamin” on Telegram!