The Financial Stability Report for 2023 covers various topics including the Financial Vulnerabilities Heatmap, financial conditions in the global and Uzbekistan's economies, the situation in the financial and non-financial sectors, the asset market situation, the results of the macro stress test for the banking system, climate change risks, opportunities for improving macroprudential policy, and internal and external risks to financial stability.
In the 2023 Financial Vulnerabilities Heatmap, vulnerabilities related to households, the real estate market, and banking system liquidity are analyzed.
In the financial sector, the financial conditions of banking and non-banking sectors, as well as the dynamics of the capital market, are thoroughly analyzed. Similarly, the analysis extends to the non-financial sector, encompassing corporate and household domains.
The asset market section examines the real estate and automobile markets, evaluating the gap between market and fundamental prices.
The results of the macro stress test, evaluating the resilience of Uzbekistan's banking system under the baseline and adverse scenarios, were presented. Additionally, the system's resilience was further assessed by introducing add-on shocks to the adverse scenario.
Furthermore, the report highlights climate change risks, utilizing a dedicated dashboard to evaluate current risk levels for Uzbekistan, underlining the importance of integrating climate considerations into financial stability frameworks.
Proposals for enhancing macroprudential policy, including the introduction of a countercyclical capital buffer, are explored, aiming to fortify the resilience of the financial system against future shocks.
Lastly, the report identifies internal and external risks, alongside proposed mitigating measures, crucial for safeguarding the stability of Uzbekistan's financial system amidst evolving global and domestic challenges.
