Development of Xalq Banki

Efforts for economic reforms are still slow in Uzbekistan. Xalq Banki is traditionally collecting savings and arranging for payment transfers to various state authorities – it is hardly able to cover costs.

The project aims at transforming Xalq Banki into a fully fledged bank that is concentrating its efforts on SME and the population. SBFIC has supported the reformulation of Xalq Banki’s business strategy towards retail banking. Besides the introduction of risk (mainly credit) management and the development of new products the improvement of the branch network is at the heart of the project. Two pilot branches (one in Tashkent, one in Samarkand) have been newly designed and a mobile branch (special car that is equipped in order to offer basic banking services in the regions) has been delivered. Pilot branches are specialising in SME clients – the bank is making own funds available for lending.

Services provided

• Development of a retail banking strategy fitting the needs of Xalq Banki
• Development of new products for retail customers
• Reorganisation and redesign of procedures
• Provision of training and courses (off and on the job) for management and staff (also abroad)
• Organisation of information visits and seminars at German Savings Banks and other organisations of the German Sparkassen-Finanzgruppe
• Support to regional development, delivery of a mobile branch.

Origin of funding
German Federal Ministry for Economic Cooperation and Development (BMZ).