Uzbekistan's banking sector retained financial stability and a high potential to cover possible risks by the end of 2025, according to a review by the country's Central Bank.

The level of financial stress in the banking system fell to a historic low. The regulator estimates this indicates reduced pressure on the banking sector, as well as sufficient capital and liquidity levels.

The total regulatory capital adequacy ratio stood at 18.3%, the Tier 1 capital adequacy ratio at 14.7%. The liquidity coverage ratio (LCR) reached 208%, and the net stable funding ratio (NSFR) — 120%.

The share of non-performing loans in the banking sector was 3%. Return on assets (ROA) reached 2.2%, and return on equity (ROE) — 12.4%.

According to the Central Bank, these indicators show that banks have sufficient capital buffers to cover unexpected losses, can withstand short-term liquidity outflows, and operate relying on stable funding sources.

At the same time, the regulator noted that the growing share of retail lending, the quality of microloans, and exchange rate volatility remain factors requiring constant monitoring.

Earlier, Central Bank Chairman Timur Ishmetov urged central banks to pay more attention to preparing for external shocks and adverse scenarios in the global economy. In his words, amid growing global uncertainty, traditional macroeconomic forecasting is no longer sufficient.

Source: kun.uz