The Central Bank of Uzbekistan has increased the maximum permissible level for the share of one bank in the charter capital of any company, other than a financial company, from 20% to 26%. The granting of permission for banks to receive blocking shares in joint stock companies and in the charter capital of companies with other forms of ownership is motivated by plans to make more use of banks’ investment potential and to stimulate bank activity on the stock market, as this will allow credit organisations to effectively influence the management process in joint stock companies.
According to rules set by the central bank, Uzbek commercial banks can invest up to 75% of the regulated level-one capital in all non-government securities. This amount includes the bank’s charter capital, general reserve fund and retained earnings from previous years less intangible assets. A bank can put 50% of this regulated capital into long-term investments, and 25% in a short-term (up to one year) trading portfolio.