The Board of the Central Bank of Uzbekistan (CBU) has decided to keep the countercyclical capital buffer (CCyB) rate for banks (excluding microfinance banks) unchanged at 1.5 percent.
An analysis of the effective indicators used to determine the CCyB rate has shown that a standard risk environment prevails and macrofinancial conditions have eased in the country, indicating that it is appropriate to maintain a positive level of the CCyB for the banking system.
In addition, the quality of commercial banks’ loan portfolios improved. In particular, the share of non-performing loans in total loans stood at 3.6 percent as of July 1, 2026, decreasing by 0.2 percentage points year-on-year.
Positive trends were observed in banks’ profitability indicators. In particular, the net profit of the banking system amounted to 11 trillion UZS in H1 2026, increasing by 69 percent compared with the corresponding period of 2025.
Moreover, the average debt service-to-income ratio for bank borrowers, taking into account both bank and non-bank liabilities, declined from 38 percent in 2024 to 37 percent in 2025.
As of July 1, 2026, the Common Equity Tier 1 ratio and capital adequacy ratio of the banking system reached 15 percent and 18.5 percent, respectively.
Furthermore, the required CCyB rate, estimated through quantitative approaches in accordance with a framework for setting the CCyB rate for banks, remained unchanged.
The Board of the CBU, taking into account the current macrofinancial conditions, kept the CCyB rate unchanged in order to further strengthen the stability and resilience of the banking system and prevent the emergence of cyclical systemic risks.
