The Financial Stability Report for 2022 analyzes macrofinancial vulnerabilities and risks, financial soundness indicators, the real estate market, and the banking system’s resilience to various shocks.
To visualize financial stability data in an easy-to-read way, the Financial Vulnerabilities Heatmap was developed.
The report provides an overview of global financial conditions in 2022, the banking turmoil in 2023, and financial stability risks.
In the banking sector section, the financial stress index, a new aggregate indicator, illustrates the overall stress level in Uzbekistan’s banking system. The index suggests that the system’s stress level decreased by the end of 2022.
The risk maps for the credit market conditions, financial soundness, banking system resilience, and debt burden risks were analyzed.
In the real estate market section, the drivers of the divergence between market and fundamental house prices are discussed.
The scenario-based macro stress test results were also discussed. In the adverse scenario, the solvency risk associated with one bank’s failure spilling over to other banks was assessed. In addition, the impacts of add-on shocks to the adverse scenario were evaluated.
Finally, the report explores the opportunity for introducing a countercyclical capital buffer in Uzbekistan.