On 19 April 2023, the President of Uzbekistan signed law No. ЗРУ-831, which came into force on 20 April 2023 and introduced changes to the law “[o]n banks and banking activities” (the “Amended Banking Law”).
Law on Banking
The Amended Banking Law (i) increases the minimum charter capital requirement for banks and (ii) lifts certain restrictions on ownership of bank shares by non-residents of Uzbekistan.
Increased charter capital requirements
The Amended Banking Law increases the requirements for the minimum amount of charter capital of banks in Uzbekistan from UZS 100 billion to UZS 500 billion (from approximately USD 8,780,000 to USD 43,898,000 as of 1 May 2023) within the following timeline:
- UZS 100 billion until 1 September 2023 (approx. USD 8,780,000);
- UZS 200 billion from 1 September 2023 to 31 March 2024 (approx. USD17,559,000);
- UZS 350 billion from 1 April 2024 to 31 December 2025 (approx. USD 30,729,000);
- UZS 500 billion from 1 January 2025 and onwards (approx. USD 43,898,000).
The Amended Banking Law further stipulates that the Central Bank of Uzbekistan has the right to set a different timeline for compliance with the above minimum charter capital requirements in cases of privatization of banks with a state share by way of entire divestment of such state share to non-residents. Read more
