Approved by Board of the Central bank of the Republic of Uzbekistan of November 9, 1998 No. 431 (protocol 19/7)

Regulations on unsafe and unhealthy banking activity

1. General provisions

This Provision is developed according to the Law "About the Central Bank of the Republic of Uzbekistan" and determines concepts of unsafe and unhealthy banking activity.

Article 51 of the Law "About the Central Bank of the Republic of Uzbekistan" provides release of the regulating documents obligatory to application by banks on non-admission of violations in implementation of their activities. Article 53 of the above-named Law permits the Central bank to take certain measures in case of the allowed violations or if banking activities led to creation of real danger of interests of bank investors or investors.

2. Prohibition of implementation of unsafe or unhealthy banking activity

1. Banks shall not perform unhealthy or unsafe activities.

2. Unsafe or unhealthy activities are any action or failure to act which contradicts the commonly accepted regulations of reasonable banking activity whose possible effects in case of long action can lead to emergence of real threat to interests of bank investors, other creditors or investors.

3. Examples of unsafe or unhealthy banking activity include:

- implementation of activities in which the bank has no sufficient skills or experience of personnel, policy or procedures;

- loan granting without sufficient opportunities of the borrower for payment of the credits, the analysis or check;

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