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BANKING LAW

The banking system in Uzbekistan remains closely controlled by the state through a complex set of regulatory actions, decrees, proclamations and practices. The Banking Law defines banking operations, sets limits on the equity participation of every shareholder (i. e, not more than 35 percent of chartered capital), allows bank to determine their interest rates for loans and commission fees for services and bans anti-competitive behaviours by banks. Banks are conceived (задуманы) to be universal banks, which can undertake not only commercial banking functions but also investment and leasing functions as well. However, they are not allowed to engage directly in production, trade and insurance activities.