Community banking: New system to support local entrepreneurs in Uzbekistan

The initiative to introduce community banking in Uzbekistan's districts has been officially supported. This decision was made during a videoconference meeting chaired by President Shavkat Mirziyoyev on December 16, where the year's efforts to reduce poverty in neighborhoods through banking services and key plans for 2025 were discussed.  

During the meeting, it was emphasized that district governors and banks should work together. This partnership will expand four key practices in mahallas, creating a unified system aimed at increasing household income.  

According to the proposal, district banks will function as clients, supporting local entrepreneurs by facilitating their projects and addressing problems directly at the community level. Meanwhile, district governors will be responsible for ensuring access to necessary space and infrastructure for project implementation.  

The new system introduces the role of community banking, who will assess the business potential of each mahalla, engage with local residents, and turn their ideas into viable projects. They will also educate the population on obtaining and repaying loans, launching businesses, and selling their products.  

During the meeting, President Mirziyoyev highlighted the global economic challenges affecting national economies worldwide. In response, he stressed the importance of strengthening financial discipline and ensuring personal responsibility at all levels of Uzbekistan's financial and banking system.  

Reports from the heads of the economic complex and proposals from banks were reviewed during the session. Additionally, the positive experiences of regional entrepreneurs were shared to promote best practices.