Major Agreements in Samarkand: JSC Xalq Bank takes bold steps into the global financial market

The 59th Annual Meeting of the Asian Development Bank (ADB), hosted by the city of Samarkand, is proving to be rich not only in official events but also in historic agreements.

During the summit, the JSC Xalq Bank has elevated its relationship with its major partner, the Asian Development Bank, to a new level.

A pivotal meeting between representatives of JSC Xalq Bank and the Asian Development Bank took place during the summit, resulting in the signing of a new Memorandum of Cooperation.

This agreement is designed to foster the development of market-based financing in Uzbekistan and to expand JSC Xalq Bank's access to international financial markets.

During the meeting, Chairman of the Board Shuhrat Atabaev highlighted achievements from recent years. According to the Chairman, collaboration with the ADB has marked a significant turning point in the bank’s operations.

“At the start of our cooperation, the share of the bank’s non-performing loans (NPL) stood at 17%. Today, this figure has fallen below 5%. This is a tremendous result. We are now ready to move to the next stage: we are launching trade finance and will establish non-sovereign credit lines in the future”, stated the Chairman.

Strategic transformation and future goals

The large-scale transformation processes undertaken with ADB technical assistance in recent years have revolutionized JSC Xalq Bank's operations. As a result of these reforms, the bank’s strategic development model has been fundamentally updated, accelerating the transition from a social-oriented entity to a fully commercial business model.

The increase in operational efficiency and the modernization of the risk management system have further strengthened the bank’s investment appeal. This, in turn, enabled the bank to become a full and active participant in the ADB’s “Inclusive Financial Sector Development Program”.

The newly signed memorandum is a logical continuation of these achievements and will help develop the bank’s Development Strategy for 2026-2028. The following priority areas for future cooperation have been identified:

• Raising asset quality and loan portfolio transparency to a new level;
• Building and strengthening an attractive financial profile for investors;
• Developing the risk management system in accordance with international standards;
• Systematically increasing Investor Relations (IR) capacity;
• Improving ESG (Environmental, Social, and Governance) transparency and reporting systems based on modern requirements.

During the meeting, Kanokpan Lao-Araya, ADB Country Director for Uzbekistan, praised the collaboration.

“Our relationship with Xalq Bank is growing stronger. We have been working together since 2022 and are ready to support the next stage of the bank’s transformation. The results achieved so far are very positive”, she remarked.

The meeting concluded by noting that Xalq Bank is establishing itself as a reliable partner not only within the country but also on the international financial stage.

UzA