This milestone builds on years of technical assistance from the World Bank and the Swiss State Secretariat for Economic Affairs (SECO), in close collaboration with the Central Bank of Uzbekistan, to strengthen financial consumer protection, financial sector resiliency, encompassing development of financial safety net and crises preparedness, payment system regulation and supervision, anti-money laundering and countering the financing of terrorism regime, and non-performing loan resolution framework. As part of a comprehensive multi-year program in Uzbekistan, financed by SECO through the Finance for Development (F4D) Umbrella Program, the World Bank team has been supporting the Central Bank with the preparation of the bank resolution and deposit insurance bills.

Key reforms supported by F4D included the development of regulatory tools to monitor banking risks, improve disclosure standards, and design consumer complaint mechanisms—foundations that now underpin Uzbekistan’s legal approach to bank resolution. The new law reflects global best practices by introducing structured resolution tools, such as bridge banks, debt restructuring, and mandatory shareholder loss absorption, while also ensuring depositors’ rights are prioritized in crisis scenarios. With the adoption of the law, the team is beginning to provide support for developing relevant secondary regulations, including identifying critical functions, templates, and requirements for recovery plans, resolution plans, resolution tools, valuation for resolution, liquidation, and deposit payout procedures.