Tashkent, Uzbekistan (UzDaily.com) — According to the Herfindahl-Hirschman Index (HHI), market competition is categorized into three levels: low, medium, and high. An HHI value between 2,500 and 10,000 indicates low competition, between 1,500 and 2,500 signifies medium competition, and below 1,500 reflects a high level of competition.

As of 1 February 2025, the HHI for assets improved by 72 points compared to the same period last year, reaching 800. During this time, the total assets of commercial banks grew by 17.7% (or 115.6 trillion soums) to 768 trillion soums.

The share of banks with private and foreign capital in the total assets of the banking system increased from 32.5% on 1 February, 2024, to 34.5% on 1 February, 2025. In particular, Anorbank’s share (1.36%) grew by 0.64 percentage points, TBC Bank’s share (1.33%) increased by 0.60 percentage points, and Hamkor Bank’s share (3.71%) rose by 0.41 percentage points. Meanwhile, the share of major state-owned banks in total banking assets, including National Bank of Uzbekistan (17.5%) and Asaka Bank (7.4%), declined by 1.5 and 1.3 percentage points, respectively.

Regarding loans, as of 1 February, 2025, the HHI for loans improved by 57 points compared to the previous year’s figure of 975, reaching 918. The share of loans issued by banks with private and foreign capital in the total volume of loans in the banking system increased from 30% to 31%. The total volume of loans provided by commercial banks to the economy stood at 533.1 trillion soums (36.6% of GDP) as of 1 January 2025.

By 1 February, this figure had grown by 866 billion soums, reaching 533.97 trillion soums. The total loan balance as of 1 February, 2025, increased by 14% year-on-year, with loans issued to individuals and legal entities rising by 20% and 11%, respectively. During this period, the volume of microloans issued to individuals surged by 75%.

As of 1 January 2024, the maximum allowable microloan amount was raised from 50 million soums to 100 million soums. The weighted average interest rate on all bank loans in the national currency, which stood at 24.1% in January 2024, had declined to 23.4% by December. However, the weighted average interest rates on loans for individuals in the national currency increased to 24.9% in December 2024, up from 23.8% in September, primarily due to high demand for loans in the national currency and heightened inflation expectations.

Regarding deposits, the HHI for deposits as of 1 February, 2025, stood at 636 points, improving by 32 points compared to the same period last year (668). The total volume of deposits, which amounted to 242.1 trillion soums on 1 February, 2024, had increased to 310.2 trillion soums by 1 February, 2025, reflecting 28.1% growth. The share of banks with private and foreign capital in total banking system deposits had risen by 1 percentage point as of January 1, 2025, reaching 50%. However, by 1 February, due to a decline in the shares of Ipoteka Bank and Tenge Bank by 0.67 and 0.37 percentage points, respectively, the share of state-owned banks in total deposits increased by 1 percentage point.

The weighted average interest rate on foreign currency deposits, which was 4.7% at the beginning of 2024, had risen to 5.3% by the end of the year. During this period, the total volume of deposits attracted in the national currency increased by 36%, while deposits in foreign currency grew by 7.4%.

Throughout the analyzed period, the HHI values for assets, loans, and deposits indicate an increase in competition levels. This reflects the effectiveness of ongoing measures aimed at reducing the state’s share in the banking sector and attracting foreign investors, contributing to a more competitive environment and the continued development of the banking system.