Financial Institution Building Project

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The Financial Institution Building Project for Uzbekistan aims to a) improve corporate governance and management capacity of the commercial banks in preparation for privatization; b) increase competition between commercial banks and boost the efficiency and innovation of the banking system; and c) improve prudential regulations and strengthen the supervision capacity of the central bank. There are six components. The first provides technical assistance to selected banks addressing treasury and financial risk management, strategic planning, accounting, internal audits, management information systems (MIS), and credit risk management. Experts will be placed in participating banks in order to design and implement reforms. The second component provides technical assistance to all commercial banks, and funds training in critical risk management areas. The third component strengthens the legal/regulatory and supervisory capacity of the central bank. The fourth component strengthens the MIS available to support bank manager decisionmaking; upgrades payments systems, improves telecommunications performance supporting MIS and payments systems; and establishes a global security system to safeguard the commercial banks' data transfer networks. The fifth component funds bank privatization and restructuring. The sixth component supports the strengthening of the project implementation unit.