Results of banking system activity for 2020

The results of the banking system for 2020 have been summed up on January 21, 2021 at the enlarged meeting of NBT, which was chaired by Chairman of the NBT Kholikzoda Hokim Hikmatullo with participation of Assistant to President of the Republic of Tajikistan on Economic Affairs Hikmatullozoda Nematullo, First Deputy Chairman of the NBT Nuraliev Jamoliddin, Deputy Chairmen of NBT Nakhatzoda Mohbonu, Tolibzoda Firdavs, Yoqubzoda Mirhayot, representatives of financial institutions, Banks Association of Tajikistan, Association of Microfinance Organizations of Tajikistan and key subdivisions of the Bank, it was summed up the results of banking system activity for 2020 and plans for 2021.

Opening the meeting, the Chairman of NBT Kholikzoda Hokim has noted that the National Bank of Tajikistan had taken the necessary measures during 2020 to effectively implement monetary policy, develop the banking system, to ensure financial stability and promote the stabilizing of national economy.

It was noted that throughout 2020, the impact of the COVID-19 pandemic on various sectors of the global economy and such influencing factors as the introduction of a lockdown in some neighboring countries, restricting the delivery of goods across borders, reducing trade relations and others to a certain extent had serious consequences for the banking system of the country. However, timely undertaken measures to support the liquidity of credit financial institutions including a reduction of cost of loans provided to sectors of the economy, a revision of the refinancing rate and required reserves ratio of credit financial institutions for deposits and similar liabilities have allowed the banking system to be active in this difficult period for supporting national economy.

“Despite the arisen difficulties the National Bank of Tajikistan will take all necessary measures to implement the main directions of monetary policy and stability of the country's banking system and will continue the process of reforming the banking system in order to increase the economic and social development of the country,” has noted H. Kholikzoda.

Then the First Deputy Chairman of NBT Jamoliddin Nuraliev has addressed the meeting with brief overview of reforms and measures implemented during this period based on the analysis and study of economic situation of developed economies, international reserves and exchange rate risks in these countries. In particular, J. Nuraliev has urged the participants to establish clear work in field of risk management, improvement of assets and liabilities management, complying with requirements of regulatory legal acts of the NBT, to provide reliable reports, to increase the level of financial intermediation and etc.

In his address, Deputy Chairman of the NBT Tolibzoda Firdavs has attracted the attention of the meeting participants on results achieved and factors affecting the banking system, especially on the issues related to capital adequacy ratio of credit financial institutions, return rate on assets and capital and decrease of NPL loans, liabilities of banking system, liquidity, quality of loan portfolio, interest rates, financial intermediation and etc.

Further the heads of NBT key subdivisions have made presentations, in particular, Head of Financial Stability Management N. Kurbonalieva addressed on financial stability of banking system and risks concentration, Deputy Head of International Reserves Management and Exchange Rate Policy O. Abdusalomov on situation of domestic foreign exchange market, Deputy Head of Financial Monitoring Department F. Bilolov concerning the progress of compliance with legal requirements in field of AML/CTF in the banking system of the country, Deputy Head of Payment System Management J. Aminjonov on situation of payments system and payment cards market, infrastructure and dynamics of their growth, D. Ghaniev, Deputy Head of Information Technologies Department on situation of automated systems of credit financial institutions, ensuring the protection of information and main risks, U. Bozorov, Deputy Head of Financial Services Consumer Rights on incoming applications of citizens and their consideration in order to protect the rights of banking services consumers.

Also the heads of NBT regional branches have addressed the meeting with reports. The heads of the country's credit financial institutions, in particular, Chairman of Board of the State Savings Bank of the Republic of Tajikistan "Amonatbank" S. Ikromi, First Deputy Chairman of OJSC "Orienbonk" Sh. Ismatulloev, Chairman of Board of CJSC Bank "Arvand" Sh. Sodikova and others have expressed their views on the discussed issues.

Summing up the results of the meeting, Assistant to President of the Republic of Tajikistan on Economic Issues Hikmatullozoda Nematullo has emphasized that one of the main directions of state policy is monetary policy and the Founder of Peace and National Unity, Leader of Nation, President of the Republic of Tajikistan, honorable Emomali Rahmon pays special attention on the increasing volume of lending to sectors of the economy. “In difficult conditions of 2020, despite the impact of external factors and existing risks, the banking system continued its work and achieved certain results,” has noted N. Hikmatullozoda. In order to provide more opportunities for lending to sectors of the economy, especially to support domestic entrepreneurs for production of import-substituting and export-oriented goods, it is necessary to ensure implementation of efficient monetary policy, corporate governance, revitalization of real sector, especially production and focus on attracting capital.

At the same time, Hikmatullozoda Nematullo has underlined that 2021 is a historic year for the Republic of Tajikistan in connection with the celebration of the 30th anniversary of state independence of the Republic of Tajikistan and it is necessary to meet this date with worthy indicators.

In the final part of the meeting, the Chairman of NBT Kholikzoda Hokim Hikmatullo has expressed gratitude to the Founder of Peace and National Unity - Leader of Nation, President of the Republic of Tajikistan, honorable Emomali Rahmon for special attention on issues of banking system and supporting this industry and noted that the banking system of the country as an important branch in the socio-economic development of the Republic of Tajikistan directed its activities in priority areas, especially in achieving the fourth strategic goal of the country – an accelerated industrialization of the country. In this regard, in order to improve the quality of banking services and financial performance, to introduce new banking products, as well as increase the volume of lending for various sectors of the economy, in particular the real sector, small and medium-sized businesses, domestic producers and to revitalize the national economy, attract domestic and foreign capital the immediate measures will be taken.