Tashkent, Uzbekistan (UzDaily.com) -- A workshop on the best practice in microfinance regulation and supervision for the specialists of the main and regional offices of the Central Bank and other stakeholders was conducted on 9 July 2010. The given workshop was organized by the joint project of the Central Bank of the Republic of Uzbekistan and the United Nations Development Programme (UNDP) “Support to microfinance sector development”.

A dynamic growth in numbers of microcredit organizations demonstrated the need for further improvement of the legal and regulatory environment of the microfinance sector in line with the recent developments of the Basel Committee pertaining to microfinance legislation and regulation. The participants of the workshop highlighted that in order to stimulate a further sustainable growth of the microfinance sector, it is necessary to introduce international best practice in microfinance regulation, accounting for the specifics of the financial market of Uzbekistan. Such initiative has been carried out within the framework of the development of the national mid-term Concept of microfinance development for 2011-2015.

The seminar aimed at presenting the preliminary results of the Regulatory Impact Assessment (RIA) of microfinance operations in Uzbekistan, as well as to discuss options for the introduction of nonprudential regulation framework for microfinance in Uzbekistan for the specialists of the main and regional offices of the Central Bank. During the workshop, the participants had the opportunity to discuss the risks in microfinance, methodology of risk assessment and risk management. The participants were familiarized with the overview of the best practices of regulation and supervision of microfinance activity, as well as discussed the preliminary results of RIA and the key issues and challenges of the creation of new regulatory and supervisory framework of microfinance sector in Uzbekistan.

The seminar was organized within the framework of one of the major activities of the Project, targeted at an extensive capacity building of the department of supervision and regulation of non-bank institutions under the Central Bank in conducting high-quality regulation and supervision and analysis of activities of microcredit organizations and credit unions, as well as the whole microfinance market, and in ensuring transparency of operations conducted in the sector.

Mr. Piotr Korynski is an international consultant with 15 years of experience and expertise in countries of Central and Eastern Europe, Central America, and South Africa. Mr. Korynski specializes in the development of policies and programs to foster microfinance and micro/SME development, as well in the improvement of regulatory, supervisory, and institutional capacity building programs.