Results of activity of banking system of the republic for 2017 and next tasks for 2018

On January 10, 2018, the meeting on "Results of banking system for 2017 and challenges for 2018" was held in the National Bank of Tajikistan with participation of heads of regional branches of the NBT, credit institutions, Individuals Deposit Insurance Fund, Association of Banks of Tajikistan and Bureau of Credit History.

In the beginning of the meeting, Chairman of the National Bank of Tajikistan Mr.Jamshed Nurmahmadzoda has reminded to participants about problems and tasks identified in the message of the Founder of Nation, President of the Republic of Tajikistan Emomali Rahmon (dated 22.12.2017). In particular, he noted that the country's banking system " needs to take precise measures to conduct proper monetary and credit reform, preserve the stability of national currency exchange rate, price level, stability of banks, control over compliance with banking legislation and its improvement, minimization of risks and introduction of corporate methods of management. "

In continuation of his speech, the Chairman of the National Bank of Tajikistan J. Nurmahmadzoda has familiarized the audience with macroeconomic and banking indicators, noted that despite the fact that the banking system in 2017 was under pressure of external factors connected with continuation of financial and political crisis in the world and also change in prices for main export articles, macroeconomic indicators of the republic in 2017 are assessed as positive.

It was noted that as a result of health measures in some credit institutions including problem banks the share of NPL (loans overdue more than for 30 days) tends to decline. According to operational data, the share of NPL loans as of December 31, 2017 has made 37.1%, which was less for 9.7% than in the same period of last year. The total balance of deposits has made TJS 9.2 billion, which remains unchanged from last year. It was also stressed that deposits, excluding the deposits of two problem banks, increased for TJS 1,737.3 million or 30.4% compared to the previous year that indicates a growing confidence of population to banking system. The total amount of loans issued, except for two problem banks, increased by TJS 997.7 million or 15.1% compared to the previous year, which means relatively stable development of the country's economy and increase in demand for credit resources.

"The National Bank of Tajikistan implementing the consistent monetary and exchange rate policy to achieve priority tasks using monetary instruments, primarily the refinancing rate to regulate the amount of reserve money and to eliminate foreign exchange and inflationary pressures, in order to increase the efficiency of work and population's confidence to banking system will continue structural reforms, measures of recovery and constant monitoring of the banking system ", emphasized in his speech the Chairman of the National Bank of Tajikistan Jamshed Nurmahmadzoda.

Then, Deputy Chairman of the National Bank of Tajikistan Sirojiddin Ikromi has adressed with detailed report on main issue of the meeting "Results of banking system activities for 2017 and challenges for 2018" including the position of banking system in the light of the Message of the Founder of Peace and National Unity-Leader of Nation, President of the Republic of Tajikistan Emomali Rahmon (dated 22.12.20217), indicating macroeconomic indicators, measures taken in 2017 and subsequent tasks for 2018.

Sirojiddin Ikromi has attracted the attention of heads of credit institutions to monetary policy instruments in 2017, implementation of foreign exchange policy for the reporting period, structure of banking system, total balance sheet of credit institutions, structure of assets and liabilities, capital structure, contribution of banking system to the economy, division of assets by profitability, dedollarization, quality of loan portfolio, key indicators of payment card market, assets and liabilities of the Individuals Deposit Insurance Fund.

Then, Head of Financial Department of the Executive Office of President of the Republic of Tatarstan, Abdurakhmon Halimzod, addressed the participants. He stressed that the National Bank of Tajikistan needs to take appropriate measures to expand the scope of non-cash settlements, for repayment of NPL, ensuring macroprudential policy, introduction of modern services and protection of rights of consumers of financial system services, increasing the level of financial literacy of the population, which are indicated in the next Message of the Leader of Nation - President of the Republic of Tajikistan Emomali Rahmon.

During the discussion, heads of credit institutions have expressed their views on existing problems and noted that together with the National Bank of Tajikistan they will contribute to the settlement of these issues.

At the end of the meeting, summing up the results of the banking system's activities for 2017, taking into account the tasks indicated in the next Message of the Leader of Nation, President of the Republic of Tajikistan, honorable Emomali Rahmon set new tasks for credit organizations of the country. In particular, it was noted that in 2018 the concrete measures should be taken to attract cheap and long-term capital, improve the credit culture, improve credit policy, modernize corporate governance, retrain and properly deploy personnel, strengthen internal control and risk management, improve quality and services for introduction of modern banking services, expanding the scope of non-cash settlements and providing entrepreneurs with terminals, increasing lending for development of tourism industry and national crafts and to direct all efforts to increase public confidence to banking system. Along with domestic banks, as well as foreign banks operating in Tajikistan, it was recommended to intensify works for attraction of investment to national economy.

It was noted that the National Bank of Tajikistan together with credit institutions will regularly take measures to implement effectively monetary and exchange rate policy of the Republic of Tajikistan in order to develop the country's banking system. "I hope 2018 will be the beginning of the recovery of banking system and positive results will be achieved," said J.Nurmahmadzoda.

Press-Division 
NBT