Mirziyoyev Signs Law on Bank Resolution and Liquidation

President Shavkat Mirziyoyev has signed a new law on the resolution and liquidation of banks in Uzbekistan, which will come into force on September 25, 2025.

The Central Bank has been designated as the responsible authority for bank resolution — a set of measures aimed at restoring the stability of financial institutions. It will also be in charge of preparing resolution plans for systemically important banks. According to the law, these plans must be reviewed at least once a year or whenever a bank undergoes significant structural or financial changes.

Resolution measures will apply when a bank becomes insolvent or if corrective actions fail to resolve financial distress over a six-month period. The law also allows resolution for banks deemed critical to the national economy.

The approved tools include asset transfer or sale, the creation of a temporary bridge bank, and debt write-downs. Shareholders will bear the financial losses during resolution. If senior management is dismissed under the resolution framework, they will not be entitled to severance pay.

The law also allows solvent banks to voluntarily exit the market with the Central Bank’s approval. The Central Bank remains the authority responsible for initiating forced liquidation procedures when necessary.

Earlier, Kursiv Uzbekistan reported that the volume of non-performing loans in Uzbek banks fell to UZS 23.5 trillion in one month.