Bank activity index

Bank activity index

The Center for Economic Research and Reform has developed a "Bank activity Index" for 31 commercial banks. The main purpose was oriented to assess constantly the changes in the share of private banks in the bank's assets, as well as the effectiveness of ongoing reforms and transformation processes in the banking sector. Based on this index, the Center publishes a rating of banks on a quarterly basis.

In calculating this index, the indicators of the following areas of the banks were considered:

  • Financial intermediation
  • Financial popularity
  • Capital adequacy
  • Asset quality
  • Management efficiency
  • Earning potential
  • Liquidity

As of January 1, 2021, the assets of the banking system of the republic amounted to 366.1 trillion soums, liabilities reached to 307.8 trillion soums and capital of 58.4 trillion soums. Currently, 55,274 people are work in the banking system.

Given the specific characteristics of banks, they were divided into two groups: 1) large banks 2) small banks. A particular rating was created for each group.

Activity rating for large banks

Kapital Bank and Hamkor Bank lead in the overall ranking of the activity index for 17 major banks. Kapital Bank's high results in terms of financial intermediation, asset quality and liquidity ensured the bank's 1st place. In particular, the ratio of time deposits of the bank to total loans amounted to 85%. In addition, the bank's liabilities include the share of funds received from other banks and financial institutions (3%) and the share of funds received from the government (0.5%). However, it should be noted that the capital adequacy rating of Kapital Bank indicates that the bank's performance in this area is close to the minimum requirements set by the Basel Committee.

Major/large banks activity index

For the 4th quarter of 2020

Hamkor Bank took 2nd place in the overall ranking. According to the results of the calculation, Hamkor Bank was recognized as the number 1 in terms of financial popularity. This is due to the fact that the number of legal entities and individuals receiving loans per branch of this bank is relatively high. It is also one of the top 5 largest banks in terms of revenue and liquidity. Nevertheless, the results of the separate rating of the Partner Bank show that special attention should be paid to improving the quality of assets.

Aloka Bank took the 3rd place among the largest banks with a state share. This bank is a financial intermediary (3rd place), capital adequacy (2nd place) and one of the best indicators in terms of asset quality (4th place). While the share of time deposits of banks in total loans (58%) is higher than in other state banks, the share of deposits and loans from other banks and financial institutions in total liabilities (23%) and the ratio of government borrowings (11%) is lower than the banking system.

Small Banks Activity Index

For the 4th quarter of 2020

A detailed analysis will be published in the next issue of the journal “Ekonomicheskoe Obozrenie”.

  • A full report containing research methodology and detailed information is available upon request from the Center for Economic Research and Reform.

X.S. Xamidov,

Lead Research Fellow

Center for Economic Research and Reform

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