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0PRIORITY DIRECTIONS OF DEVELOPMENT OF INSTITUTIONAL, REGULATORY AND LEGAL SYSTEMS OF CORPORATE GOVERNANCE
Yunusov Djurabay Tadjibayevich
Special subject teacher of Tovoqsoy multidisciplinary technical school under Chirchik Pedagogical University
Abstract. The master's thesis examined the priority areas for developing the institutional, regulatory, and legal frameworks of corporate governance in Uzbekistan. By addressing the theoretical and practical issues related to the topic, the thesis presented an analysis of the state of the institutional, regulatory, and legal systems of corporate governance at the Yakkasaroy branch of the National Bank, which was the research object. Additionally, the thesis developed scientific and practical recommendations on ways to improve the institutional, regulatory, and legal systems of corporate governance in Uzbekistan.
Key words. sistema korportaivnogo upravleniya, aktsionerny, holding, steikkholdery, uchastniki korporatinogo upravleniya, proizvodstvennye protsessy.
Introduction. The public interest in the issues of corporate governance in joint-stock companies in Uzbekistan has been steadily increasing. Significant efforts are being made to improve corporate governance and implement its mechanisms in enterprises across the country. Notably, a national code of corporate governance has been developed. Undoubtedly, the successful implementation of these initiatives will foster economic growth, enhance the investment attractiveness of enterprises, and create a stable, highly competitive business environment - all of which are of great economic importance.
To further modernize the country and liberalize all spheres of life, the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, issued a decree in 2017 outlining the "Strategy of Actions for Further Development of the Republic of Uzbekistan." This strategy emphasizes reducing state participation in the economy, protecting private property rights, and strengthening their priority position. Additionally, it highlights the importance of continuing institutional and structural reforms to stimulate the development of small business and private entrepreneurship, introduce modern standards and methods of corporate governance, and consistently reinforce the role of shareholders in the strategic management of enterprises.
From this perspective, the essence of corporate governance can be considered a priority for developing the institutional, regulatory, and legal systems of corporate management in Uzbekistan within the framework of an economic system characterized by the presence of a corporate strategy, the corporate work style of managers at all levels, financial and information openness, and an effective system for protecting the rights of shareholders and owners. This determination of the essence of corporate governance underscores the relevance of the topic addressed in the master's thesis.
Methods. Systematic, complex approaches to the studied economic phenomena,
as well as statistical methods, expert assessments, economic and mathematical modeling were used as research tools. The theoretical and methodological basis of the dissertation research is the theoretical and methodological rules for ensuring the state correction of corporate governance presented in the works of scientists of developed countries and the Republic of Uzbekistan.
Results. In 2020-2021, the activity of the National Bank was carried out in the context of the slowdown of global economic activity, the continuation of uncertainties and risks, the decrease in external demand as a result of the interruption of the international supply chain, the weakening of domestic demand and the crisis of production activity due to the coronavirus.
At the same time, the main attention was paid to maintaining the purchasing power of the population by stabilizing domestic prices, ensuring financial stability in the economy by mitigating the negative impact of the coronavirus crisis on the financial condition of enterprises and banks, as well as taking coordinated measures to maintain economic activity to ensure financial stability in the economy.
Decisions were made on the basis of comprehensive macroeconomic analysis and forecasting, regular monitoring of changes and expectations in the domestic and foreign economic situation, as well as preliminary risk assessment.
At the same time, in order to effectively regulate interest rates in the interbank money market and ensure their formation close to the base rate of the National Bank Yakkasaroy branch within the interest corridor, a new set of monetary and credit instruments was introduced.
At the same time, in order to ensure the stability of the capital adequacy ratio in the banking system, along with the creation of reserves for overdue loans, instructions were given to prevent distribution of profits by paying dividends by commercial banks.
In order to transform state banks in 2020, to reorganize their activities in accordance with market principles and international standards, as well as to expand the participation of private capital in the banking system and strengthen the competitive environment, the Decree of the President of the Republic of Uzbekistan No. UP-5992 was approved.
Strategy for the reform of the republican banking system of Uzbekistan for 20202025. In order to organize the activities of banks on the basis of market principles, in cooperation with international financial institutions and foreign consulting companies, work has begun on introducing modern information technologies in banks, improving the corporate management and risk management system, and optimizing their organizational characteristics. In particular, in order to improve the efficiency of the system, as independent members of corporate management, bank management, "Mortgage-bank" has 5 people, 4 specialists each, who have advanced skills and experience in banking and finance. zsanoatqurilishbank", "Asaka-bank", "Khalq bank" and "Turonbank", 3 specialists were involved in Agrobank, "Kishloq kurilish bank" and "Mikrokreditbank", and 1 specialist in National bank.
Analyses. Assets and financial indicators have stable growth dynamics. To date, the assets of the National Bank Yakkasaroy branch amount to 3 trillion 300 billion
soums. The bank's equity capital is about 670 billion soums. The reliability of the bank's financial condition is confirmed by the credit ratings of international and national rating agencies. Bank assets increased by 150% in 2021. The financial statements of the National Bank Yakkasaroy branch in accordance with international accounting standards were positively evaluated by the international auditing company Pricewaterhouse Coopers.
The bank actively cooperates with major financial institutions of the world. The presence of representative accounts in the largest international banks allows international operations and documentary operations to be carried out quickly. The bank is a full main participant of MasterCard, Visa International and Union Pay International payment systems. This allows us to serve any cards of the world's main payment systems through our terminals and ATMs. 12 million dollars was allocated to our bank by the Private Sector Development Islamic Corporation to finance private business development projects.
Business Lending Milli Bank Yakkasaroy Branch offers various types of loan products for enterprises and individual entrepreneurs that enable them to successfully complete various business tasks.
For the convenience of customers, each transaction is fully accompanied by a personal manager who provides professional advice on all services.
Plastic cards. National bank Yakkasaroy branch offers organizations to implement a salary project with us. Customers can only ensure the conclusion of an agreement with the bank on the implementation of the salary project, the opening of plastic cards and the submission of relevant documents for crediting salary and equivalent payments, and the Bank's employees will carry out all the necessary procedures, so that employees of the organization can easily use UZKART UZS plastic cards.
Table 1
Terms of service and commission rates for the MasterCard Business plastic card according to the information provided by the Yakkasaroy branch of the
National Bank
№ List of services Cost
1. Payment for opening the main card $100
2. Fee for opening an additional card $100
3. Card reissue fee $100
4. Card validity period for 2 years
5. Transaction fees
5.1. Payment for goods and services In the banking network
5.2. Cash withdrawal In the banking network
5.3 Cash transfer to an account in the National Bank Yakkasaroy network there is no such operation
5.4 Cashless deposit to the account 1%
6. Urgent card issuance (excluding card issuance fee) $50
7. Security deposit (minimum account balance) $500
8. Fee for issuing a certificate on the operation of the card account $20
9. Payment for blocking the card with the symbol $10
"Stolen or lost".
According to Table 1, it can be said that "UZKART" interbank payment system is a local payment system, the main element of which is plastic cards with microprocessors, legal norms, regulatory documents, software and technical solutions and relevant organizational based on technical infrastructure. , banks that issue microprocessor bank cards and provide services to sellers of goods, a settlement bank, as well as a processing organization, are integrated into a single system designed for electronic cashless payments.
Table 2
Types of services and tariffs for the "UZKART" soum corporate plastic card of the Ministry of Railways based on the information provided by the
Services commission
Issuance of the main / additional card with a validity period of 2 years 20 euros
Extending the validity period of the main/additional card 5 euros
Reissue in case of loss/damage of primary/additional card 25 euros
Add a plastic card to the Stop List For free
National services for plastic cards are provided for legal entities and individual entrepreneurs. "UZKART" currency interbank payment system is a local payment system, the main element of which is micro-processor plastic cards, based on legal norms, regulatory documents, software-technical solutions and relevant organizational-technical infrastructure.
According to Table 2, you can see that "Milliy Bank Yakkasaroy Branch" provides services for mutual settlements between customers' cards and trading terminals of trade and service enterprises. The equipment for rent, provided with means of communication, is able to accept payments from the soum plastic cards of the DUET and SmartVista systems of the Ministry of Railways "UZKART".
Milliy Bank Yakkasaroy branch provides its customers with a wide range of services for processing all types of foreign trade transactions, making transfers in foreign currency, conversion operations, providing settlement and cash services in foreign currency.
The complete list of services provided by the Yakkasaroy branch of the National Bank to legal entities in foreign currency:
Opening and maintaining accounts in foreign currency:
• Transfer of foreign currency within the Republic;
• transfer of foreign currency outside the Republic of Uzbekistan;
• Transactions with cash currency
• Conversion operations
Table 3
Accounting for export, import and barter contracts according to the information _provided by the Yakkasaroy branch of the National Bank_
№ Types of services and products Tariffs
1 Service of foreign trade agreement on import operations 10 dollars
2 Servicing the foreign trade agreement on export operations 10 dollars
З Transfer of foreign trade service contract to another authorized bank 20 dollars
Table 3 shows the account of export, import and barter contracts according to the information provided by the Yakkasaroy branch of the National Bank: servicing of foreign trade contracts for import operations, servicing of foreign trade contracts for export operations presentation, transfer of the foreign trade contract to another authorized organization.
Table 4
Conversion operations are based on the information provided by the _Yakkasaroy branch of the National Bank_
№ Types of services and products Tariffs
1 Conversion of one foreign currency to another foreign currency 1% of the required amount in foreign currency, minimum 20 USD
2 Selling foreign currency to national currency "soum" to clients based on the results of trades at UzRTXB 2% of the amount of the application for the purchase of foreign currency
З Purchase of foreign currency from clients for national currency "soum". for free
Table 4 shows the conversion operations according to the data of the Yakkasaroy branch of the National Bank. In the modern pace of life, every minute is precious, so are our loved ones who are thousands of kilometers away from us and need our attention and care.
When making a bank transfer, choose the receiving currency that is convenient for the recipient, pay for the transfer in US dollars, and the commission is 0%. The client-sender enters only the transfer amount in US dollars without commission for the money transfer. Payment in US dollars, sending and receiving in a currency convenient for the recipient, except for sending a money transfer between Asia Express and Monex Systems - 1.5% of the money transfer amount.
Taking into account the changing demand of economic entities, as well as the appearance of new products (Payme, Click, etc.) on the market, Republican banks are actively expanding their product range using technologies. in cooperation with other organizations. Today, the development of special mobile applications, as well as the continuous improvement of the provided services (taking into account the high competition and market dynamics), increasing their attractiveness for customers and ensuring loyalty, is one of the promising directions.
Discussion. Corporate governance in banking refers to the method of managing the activities of a credit organization by the board of directors and management. It involves managing current operations while considering the interests of stakeholders, setting corporate goals, and observing rules of corporate conduct to protect the interests of depositors and comply with applicable laws.
The development of favorable conditions for improving corporate governance in Uzbekistan's banking sector involves both internal and external regulators. Internal regulatory bodies, such as banking associations and non-profit organizations, form a
self-regulatory system aimed at creating a positive image and increasing the competitiveness of member organizations. External regulation is carried out by regulatory and supervisory bodies through the formation of appropriate legal frameworks.
Large corporations, including banks, play a significant role in the global economy. The strength and stability of banks, which are crucial to the economy of every country, are of great interest to the general public. An effective corporate governance system is closely related to increasing the level of trust and confidence of the population in the banking system, which are essential for the proper functioning of the banking system and the economy as a whole.
Corporate governance is a specialized system of management and control in banks. It determines the distribution of rights and obligations among all participants, including managers, shareholders, and other parties with financial interests. Corporate governance establishes an organizational structure, defines the main tasks, determines the ways to solve them, and provides oversight.
The National Bank plays an important role in ensuring the proper functioning of the banking sector. The stability of banks is the foundation of financial stability, and the quality of banking activities is a crucial factor in achieving economic prosperity.
Corporate governance as a system primarily creates a mechanism to protect the interests of all existing economic agents. The implementation of appropriate corporate governance principles provides the necessary level of protection for investors' rights.
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