Uzbekistan

The country’s government is talking a big game about opening up – but how likely is real change?

The 25th year of Asakabank’s existence did not go as planned. As Covid-19 slammed global growth, Uzbekistan’s second-largest bank found itself in crisis-management mode rather than busy making deals.

Though relatively small in terms of assets – which stand at just $489 million – Orient Finans Bank (OFB) often has a markedly outsized impact on Uzbek society. That was particularly true in 2020 when the nation’s 33 million people faced the threat of a pandemic.

While most young, dynamic banks had a rotten year in 2020, CEO Ikram Abdukakhorov and his team further strengthened Asia Alliance Bank’s position in everything from lending to foreign exchange.

In the coronavirus era, every financial institution is suddenly rushing to grow and solidify their digital footprint. But 30-year-old Hamkorbank appears to be learning new tricks faster than many of its peers.

This new-ish entrant on the scene is already turning heads. It was only in May 2019 that Tenge, a wholly owned subsidiary of Kazakhstan’s Halyk Bank JSC, won a licence from the Central Bank of Uzbekistan. In less than a year, it was fully capitalized and running five branches in three cities.

SQB, as state-owned Sanoat Qurilish Bank is better known, is coming up to its centenary. Established in 1922, it has, over time, become a premier player in the whole gamut of banking in Uzbekistan: state, corporate and retail lending; deposit-taking; cash-handling; international transfers; letters of credit; and foreign-exchange operations.

Uzbekistan’s state-owned banks dominate the local financial system; a mix of local, privately owned banks and eager foreign players are helping the country to open up, but it will not be easy.