The Government issued a resolution amending the Regulation on the procedure for obtaining banking licenses, the Capital Markets Development Agency said in a statement.
The resolution stipulates that from now on, foreigners shall have the right to buy up to 5% of the stakes of local banks without prior permission from the Central Bank.
These changes will serve to improve the investment climate, facilitate capital investment into the economy, as well as eliminate barriers, the statement said, adding that the presence of portfolio investors will significantly increase the efficiency bank operations, including through improved corporate governance.
According to the Central Bank, the total capital of banks as of August 1, 2019 surpassed 30 trillion soums, or nearly US$ 3.2 billion. According to foreign experts, easing the shares purchase procedure will boost the foreign investment into the banking system by estimated 5 trillion soums, US$ 530 million.
