Specialists of the banking sector discussed the topic “Financial market as a driver for the development of the capital market” at the panel discussion within the framework of the Tashkent International Investment Forum on March 25.
In recent years, the financial market of Uzbekistan has undergone a number of important changes, in particular, in accordance with the Development Strategy of New Uzbekistan for 2022-2026, it is planned to expand financial resources in the economy by bringing the stock market turnover from $200 million to $7 billion over the next five years and completing the transformation processes in commercial banks with state shares, bringing the share of the private sector in the assets of the banking system to 60 per cent by the end of 2026. It means that the active transformation of commercial banks with a state share into modern institutions is in full swing by increasing the commercialization of banks, abandoning subsidized lending, and increasing their role as financial intermediaries that ensure the mobilization of savings into investments.
Deputy Chairman of the Central Bank – Member of the Board of Abrorhuja Turdaliev noted that great efforts are being made in Uzbekistan to develop the capital market, which is of great importance for banks. And it is very important that today in Uzbekistan all the necessary conditions are being created for foreign investors to enter the market.
He also spoke about the existing problems related to the trust of citizens. It is caused by the fact that earlier, due to problems with cash, the population had difficulties in receiving their deposits. Today, depositors’ deposits are 100% protected. Work is also underway to improve the service, protect the rights of investors from all kinds of fraud and deceit. All the measures taken will certainly have a positive impact on the further development of the capital market.
In the future, the country provides for the creation of a regional investment financial center to develop the national market, improve regulation, infrastructure, available financial market instruments and attract international financial institutions.
For this today, new modern methods in banking are being introduced that allow to automate work processes and increase the efficiency of the provision of services. Of course, streamlining and regulating the financial market is a very difficult task. Since trends are constantly changing, new trends and products are emerging that expand the range of financial instruments.
Syuzanne Gaboury, General Director of the ADB Private Sector Department, noted in her speech that financial markets are key markets that can create new jobs.
– I am very glad to be in Uzbekistan, – says Suzanna Gaburi – I visited your country for the first time in 1993. We are watching with enthusiasm the changes taking place in the country. Today we see many opportunities for the development of the financial market. However, it is worth noting that for its good work, it is necessary to introduce various tools, know-how. The private sector needs to be able to access finance. It is very important that in Uzbekistan there is great support from the government in these matters. For our part, we are also ready to provide assistance and share experience, which is very important in the context of ongoing reforms.
The financial market is becoming more and more global, technological and smart every day. However, the trust of the people is still very important in it.
Dmitriy Zalesskiy, Director of Investments and Capital Markets at KPMG, noted in his speech the importance of developing the capital market. At the same time, he stressed that this issue should not be based only on the development of the banking sector, for this, it is necessary to attract investors, create an infrastructure that meets international standards, the trust of not only large market players, but also ordinary citizens who are not afraid to invest your investments. People must trust the local market. This is a very important aspect in this direction.
Chairman of the Board and Member of the Board of Directors of Halyk Bank of Kazakhstan Umut Shayakhmetova noted that their company has already taken the first steps in the field of investment in Uzbekistan. She stressed the importance of privatizing banks and reducing the state’s stake in their management. Separately, she dwelled on the trust of the population. Since most of the contributors are small organizations. In Uzbekistan, in her opinion, great opportunities have been created that allow looking to the future with optimism.
The session also discussed how mobile banking, digitalization of financial services, fintech innovations and advanced technologies can accelerate the transformation of the banking system, providing broad access to banking services and capital markets.