Banking System of Tajikistan
Bank in the Republic of Tajikistan is commercial organization, created for attraction of deposits and other means with the aim of applying for crediting on term of repayment, paying, urgency, and also for implementing calculations by the errand of clients.
Bank is a juridical person and conformity and it is responsible for all rules regarding juridical person provided in the legislation of the Republic of Tajikistan.
It is provided by the Law of the Republic of Tajikistan.
According to the legislation of the Republic of Tajikistan there can be created the following types of bank in Tajikistan:
- state bank –the bank which the Government of the Republic of Tajikistan is the sole owner of statutory fund:
- in-state bank – the bank , which statutory fund is subject to physical or juridical person. Part of the share of this bank are subject to the Government of the Republic of Tajikistan in the Ministry of Finance of the Republic of Tajikistan:
- bank with participation of foreign capital is the bank which part of the share is subject to ownership, property and management of the following persons:
1) non resident of the Republic of Tajikistan;
2) juridical person-residents of the Republic of Tajikistan, more than 50 percent of the share
(participants deposit) is subject to ownership, property and management of non resident of the Republic
of Tajikistan or analogous juridical person – residents of the Republic of Tajikistan;
3) residents of the Republic of Tajikistan, who are the manager of the means (confidential person)
of non residents of the Republic of Tajikistan or juridical person indicated in sub-point “b” of the point;
inter-state bank – the bank created in order, established by the law in force on the base of international agreement, owner of the fund which is the Government of the Republic of Tajikistan and government, state signed the agreement.
Bank (with the exception of state banks) are created in the form of closed joint-stock company without right of issue of share to bearer.
Bank transformation into opened joint-stock company is allowed under term of its continues without loss of functioning during a year from the moment of receiving licence of National Bank of the Republic of Tajikistan for implementing banking operation and maintenance during the year established by the National Bank of the Republic of Tajikistan or other obligatory norms and limits.
Bank shareholder who is its founder, after its transformation into opened joint-stock company can’t have any additional advantages or take any additional responsibilities in compare with the other shareholders.
There are 10 banks, one branch of foreign bank, 7 credit societies and 1 non-banking financial institution in the Republic of Tajikistan as for January 1, 2008. In comparison with October 1, 2007 the number of operating banks increased for one bank and the number of credit societies decreased for one credit society due to transforming of CJSC “CS Fonon” into banking group of the name CJSC “Fononbank” (Resolution of the Board of NBT dd.07.09.2007, No.244). The number of non-banking financial organizations remained the same.
As for January 1, 2008, 8 micro credit deposit organizations, 24 micro lending organizations and 38 micro lending funds operate in the territory of the Republic of Tajikistan as for January 1, 2008. In compare to October 1, 2007 the number of micro credit deposit organizations was increased to 1 unit for account of establishment of CSLR MCDO “Muzaffariyat”. The number of micro-lending organizations and micro-lending remained the same.
As for January 1, 2008 the total number of branches is 149 and departments – 69.
In comparison with October 1, 2007 the number of branches has increased to 3 units for account of opening of branch of OJSC Tojiksodirotbank in Danghara district (Resolution of Board of the National Bank of Tajikistan dd. 03.10.2007, No.313), OJSC Oriyonbank in Leningrad urban village of Muminabad district (Resolution of Board of the National Bank of Tajikistan dd.14.12.2007, No.396) and CJSCS “Capital+” in Hujand sity (Resolution of Board of the National Bank of Tajikistan dd. 07.12.2007, No.392).
Five banks – CCUB Ayom, CJSC Somon Bank, CJSC East-Credit Bank, CJSC Bank Olymp and CJSC JTB-Investbank – are under liquidation.
As for January 1, 2008, 10 banks, operating in the territory of the Republic of Tajikistan by the type of ownership are divided into:
- 1 state bank
- 8 joint stock banks
- 1 foreign bank
As for January 1, 2008 the authorized capital in total on 10 banks, one branch of foreign bank, 7 credit societies and 1 non-banking financial organization by the type of ownership was the following:
1. State – owned - 9 036 738 somoni or 2,5%
2. Commercial - 198 643 237 somoni or 54,0%
3. Individuals - 142 781 678 somoni or 38,8%
4. Others - 17 098 592 somoni or 4,7 %
In total the announced authorized capital on banking system is 413 605 420 somoni. For the past period from October 1, 2007 to January 1, 2008 the amount of the authorized capital was increased to 655 850 somoni for account of increase of announced authorized capital of CJSCS “Vaslat” for 500 000 somoni and revaluation of foreign currency in authorized capitals of commercial banks.
According to the Paragraph 1 of Chapter I of the Instructions No. 132 “On order of regulation of the activities of banks” from January 1, 2005 the minimum capital for operating banks is determined in the amount equivalent to USD 5 million (or 16 500 000 Somoni on the date of this amount was set) and for credit societies USD 300 000 (or 990 000 somoni on the date of this amount set).
As for January 1, 2008 this standard was followed only by 9 banks and 1 branch of foreign bank “Tojorat” of IRI in Dushanbe. OJSC Sohibkorbank did not meet the requirements, its regulating capital is 13 254 004 somoni.
As for January 1, 2008 this standard was followed by 5 credit societies from 7 credit societies: CJSCS “Ganjina”, CJSCS “Capital+”, CJSCS “TRUST”, CJSC “CS “Kafolat” and CJSCS “Vaslat”.
Two credit societies have not followed the requirements of minimum regulating capital by January 1, 2008:
1. CS “Finansirovanie torgovli” LLC - 937 229 somoni
2. CJSCS “Renaissance-Capital ” - 758 978 somoni
Major normative-legal acts are following:
- Law of the RT "On bank and banking activities" dated 1998.
- Instruction of National bank of RT No. 132 "On order of regulating banks activity" dated 29october 2004.
-Decision of the Government of RT No. 248 "On fixing of volume (quotas) of participation of foreign capital in banking system of RT" dated 11 June 2001.