Permission Granted to Establish Microfinance Banks
Economy
A "link" connecting microfinance organizations and commercial banks will now be established, along with the ability to attract additional financial resources, including deposits, for microfinance institutions.
Under Law No. O‘RQ-1026, amendments and additions have been made to several legal regulations.
According to this law:
The microfinance bank institution is introduced, granting it the authority to provide banking services under specified conditions.
A legal framework is created to enable the transformation of microfinance organizations into microfinance banks, microfinance banks into commercial banks, and vice versa.
An amendment to the "Law on Banks and Banking Activities" allows the following credit institutions to change their status:
Microfinance Organization → Microfinance Bank
Microfinance Bank → Commercial Bank
Commercial Bank → Microfinance Bank
Microfinance Bank → Microfinance Organization
Additionally, under an amendment to the "Law on Licensing, Permits, and Notification Procedures," the Central Bank will issue licenses for microfinance banking activities.
According to this law:
The microfinance bank institution is introduced, granting it the authority to provide banking services under specified conditions.
A legal framework is created to enable the transformation of microfinance organizations into microfinance banks, microfinance banks into commercial banks, and vice versa.
An amendment to the "Law on Banks and Banking Activities" allows the following credit institutions to change their status:
Microfinance Organization → Microfinance Bank
Microfinance Bank → Commercial Bank
Commercial Bank → Microfinance Bank
Microfinance Bank → Microfinance Organization
Additionally, under an amendment to the "Law on Licensing, Permits, and Notification Procedures," the Central Bank will issue licenses for microfinance banking activities.
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