Kazakhstan banks could work in Uzbekistan

11 July, 2018, 11:10 326
Kazakhstan banks could work in Uzbekistan

The relevant agreements were signed by the central banks of the two states.

An interaction agreement in the sphere of banking supervision between the National Bank of Kazakhstan and the Central Bank of Uzbekistan was signed, a press service of Kazakhstan’s financial regulator reports.

The agreement “will create a legal basis for Kazakhstan banks to enter to the banking market of the Republic of Uzbekistan that, in turn, will facilitate strengthening bilateral banking cooperation,” notes the press release.

“In accordance with the agreement, Kazakhstan and Uzbekistan following the national legislations will cooperate in the exchange of information on significant innovations and changes that relate the banking sector of the two states, as well as relating to the normative and legal regulation, control and supervision within the national legislation. In particular, Kazakhstan banks are given the opportunity to create and acquire a trans-border institution on the territory of the Republic of Uzbekistan in case of meeting the necessary requirements, thy include: the presence of the authorized capital in the amount of not more than 100 million euros in tenge equivalent for the parent bank and in the amount of 100 billion so’ms for the trans-border institution; as well as the presence of a long-term credit rating under the international scale in foreign currency not below B of the rating agency Standard&Poor’s or ratings of the same level assigned by Fitch Ratings, Moody’s,” notes the report.

The central banks of the two states expressed the hope that the document would facilitate strengthening good neighborly cooperation of the two leading economies of Central Asia.