On December 15, President Shavkat Mirziyoyev reviewed a presentation on the further development of the capital market and the accelerated implementation of international banking standards. At the meeting, issues of raising the country's financial system to a new level, making it open, stable, and attractive for investment were comprehensively discussed.
According to the data, the total market value of securities currently in circulation is 275 trillion soums. The volume of securities freely traded on the exchange reached 4 trillion soums. Today, 717 issuers and 77 professional participants operate in the capital market. At the same time, it was noted that the level of capitalization of the industry is only 20 percent of GDP, which is significantly below world standards. This indicates the presence of enormous untapped potential in the market.
In this regard, specific measures aimed at attracting at least $1 billion in investments to the local capital market were discussed. In particular, it was proposed to introduce the practice of placing securities on local and foreign stock exchanges based on international standards - "dual listing." Plans were also put forward to introduce new financial instruments on the market, such as foreign currency bonds, global depositary receipts, foreign securities, and exchange investment funds.
At the presentation, special attention was paid to the issue of expanding the special legal regime, called the "regulatory sandbox." Within the framework of this mechanism, it was proposed to apply the sandbox conditions not only to non-residents, but also to residents, to establish it as an indefinite procedure for foreign investors, as well as to allow official trading in shares and bonds of foreign companies. It was noted that this step will contribute to reducing the informal circulation of foreign securities.
A number of proposals for attracting local investors to the capital market were also discussed. In particular, it was determined that by allowing local companies and banks to issue bonds in foreign currency on the Tashkent Stock Exchange, it will be possible to attract foreign exchange resources without entering the foreign market. At the same time, it was noted that it is possible to further expand the bond market by allowing issuers to issue bonds without collateral, exceeding their own capital.
Issues of improving the system of control and regulation in the capital market were also considered separately. Plans were presented to bring national legislation in line with the requirements of the International Organization of Securities Commissions, strengthen the powers of the regulator, and gradually increase the requirements for authorized capital for professional participants.
Regarding the reforms in the banking sector, it was noted that over the past seven years, the assets of commercial banks have grown by 5.3 times and exceeded 877 trillion soums. The number of banks operating in the country has reached 35, and since 2017, 3 foreign banks have entered the Uzbek market.
Uzbekistan also participated for the first time in the International Monetary Fund and the World Bank's Financial Sector Assessment Program. In this process, such important areas as banking supervision, risk management, payment systems, macroprudential policy, and anti-crisis management were deeply analyzed.
Based on the results of the assessment, next year it is planned to fully adapt the country's financial sector to the 29 basic principles of effective banking supervision of the Basel Committee. To this end, the tasks of maintaining financial reporting in all commercial banks based on international standards, implementing Basel III requirements, and establishing a Financial Stability Council with the participation of the Government and the Central Bank have been defined.
The Head of State noted that the reforms being carried out in the capital market and the banking sector are of decisive importance for the stable financing of the economy, increasing the share of the private sector, and actively attracting international investment. In this regard, responsible officials were given specific instructions for the timely and high-quality implementation of the assigned tasks.
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