2007年-世界发展银行全球_Microfinance_Development_in_Uzbekistan___Technical_Note_70页_769kb

Summary of Microfinance Development in Uzbekistan

Core Content

This document, prepared by the World Bank in March 2007, provides an analysis of the microfinance market in Uzbekistan, focusing on the challenges and recommendations for its development. It serves as a contribution to the Government of Uzbekistan’s Welfare Improvement Strategy and outlines key areas that require attention to foster a more robust and sustainable microfinance sector.

Main Challenges

A. General Policy and Macroeconomic Issues

• Low deposit-to-GDP ratio: Deposits in Uzbekistan are low, reflecting limited public confidence in the banking system.
• High informal financial activity: A significant portion of financial transactions occur outside the formal system, limiting the reach of microfinance.
• Government intervention in banking: State banks continue to operate with a focus on social objectives rather than profitability.
• Inconsistent inflation data: Discrepancies between the GoU and the IMF inflation estimates affect interest rate calculations and the perceived value of subsidies.
• Low micro-credit penetration: The micro-credit market remains underdeveloped, with loans per capita and as a share of GDP being far below international benchmarks.
• Limited impact of microfinance institutions (MFOs): MFOs have a small share of the market and are heavily dependent on donor support.

B. Legal and Regulatory Issues

• Restrictions on cash loans and consumer financing: MFOs face legal barriers in providing cash loans and financing consumer goods.
• Uncertainty around re-registration: MFOs are hesitant to operate due to uncertainty about the re-registration process.
• Regulatory burden: Current legislation imposes a heavy regulatory burden on microfinance institutions.

C. Donor and External Relations

• Preference for administered loans: The establishment of the Microcredit Bank with a subsidized loan policy signals a preference for government-controlled lending over market-based approaches.
• Potential donor withdrawal: If the government continues to rely on subsidized loans, donor support for microfinance may decline.
• NGO relations: The government's perceived antagonism toward NGOs may hinder technical assistance and capacity-building efforts.

D. Banking Sector Issues

• High state guarantees: A large proportion of loans are state-guaranteed, which distorts the market and limits the development of commercial lending practices.
• Low capital adequacy: Despite recent improvements, capital adequacy ratios remain low, indicating a need for better risk management.
• Weak credit scoring systems: Banks and MFOs lack effective credit scoring and data collection mechanisms.
• Deposits and intermediation: The banking system has limited intermediation capacity, with deposits representing only 8.9% of GDP.

Key Issues for Market Development

• Low micro-credit penetration: Micro-credit is underrepresented in the financial system, with only $15 million in outstanding loans from credit unions and MFOs in late 2006.
• Informal economy dominance: A large share of financial activity occurs informally, limiting the effectiveness of microfinance.
• Need for market-based approaches: The current reliance on subsidies and state guarantees hampers the development of a sustainable microfinance market.
• Limited data and information sharing: There is a lack of systematic data collection and sharing between banks and non-bank institutions.
• Weak institutional capacity: MFOs and credit unions are small and lack the resources and infrastructure to operate effectively.

Key Recommendations

Immediate Actions

• Re-registration support: The Central Bank of Uzbekistan (CBU) should issue clear instructions for MFOs to re-register and resume lending activities.
• Self-regulatory framework: The GoU should coordinate with the Microfinance Association to develop a standards-based self-regulatory framework.

Short-term Actions (2007)

• Subsidy timeline: Develop a clear timetable for phasing out subsidized loans and transitioning to a more targeted approach.
• Microfinance Bank licensing: Approve the license for the Microfinance Bank once a formal application is submitted.
• Dematerialization of transactions: Initiate discussions to phase out mandatory cash and non-cash transaction requirements.
• Performance indicators: Develop key micro-credit performance indicators for ongoing surveillance.
• Legislation review: Re-draft microfinance legislation to reduce regulatory burden and promote a self-regulatory approach.
• Credit information system: Establish credit information bureaus to consolidate data across the financial system.
• Credit scoring systems: Guide banks and MFOs to develop credit scoring systems and integrate data into regular reports.
• Partnership framework: Develop a partnership framework between the GoU and the Microfinance Association, modeled on the Credit Unions' association.

Medium-term Actions (Through 2010)

• Bank participation standards: Establish standards for banks' participation in subsidized loan schemes.
• Monitoring and investment: Build monitoring capacity for microfinance institutions and promote foreign investment.
• Deposit mobilization: Develop incentives for deposit mobilization and voluntary dematerialization of transactions.
• Credit risk management: Strengthen credit risk assessment and ensure alignment with financial stability assessments.
• Asset securitization: Design asset securitization packages and ratings criteria for microfinance institutions.

Long-term Actions (Beyond 2010)

• Subsidy reduction: Gradually reduce government subsidies as credit market access improves and market rates decline.
• Self-sustainability: Work towards achieving self-sustainability for the microfinance financing facility through commercial terms and secondary market investment.
• Policy alignment: Ensure that microfinance policies are aligned with broader economic and social goals, including poverty reduction and financial stability.
• Integration of credit systems: Bring together credit information systems from different segments to improve transparency and access for all lenders.

Key Data Highlights

• Micro-credit volume: In late 2006, total micro-credit was $186.7 million, with banks accounting for 91.8% of the total.
• Credit union growth: There were 35 licensed credit unions with over 50,000 members, representing 5.6% of total micro-credit.
• MFO activity: There were 14 MFOs, with five accounting for most of the activity, representing 2.6% of total micro-credit.
• Loan distribution: Banks provided $171 million in small loans to households and SMEs, while MFOs disbursed $35.6 million.
• Deposits: Total deposits in the banking system were $1.4 billion, with banks accounting for 99.4% of the total.
• Capital adequacy: Capital adequacy ratios for GoU-guaranteed loans were 21.5% in 2006, indicating potential risks.

Conclusion

The microfinance market in Uzbekistan is underdeveloped, constrained by policy, legal, and institutional challenges. The government's current approach, which emphasizes subsidies and state involvement, risks undermining long-term sustainability. A transition to market-based approaches, supported by regulatory reform, improved data systems, and enhanced institutional capacity, is essential for the growth of microfinance as a tool for poverty reduction and economic development.