In a statement released on August 25, the National Bank of Tajikistan (NBT) says nepotism is one of serious problems facing the country’s banking system.
Amendments made to the country’s law on banking activity are reportedly aimed at preventing corruption factors and banning close relatives from jointly working in state-run lending agencies.
Recall, the Majlisi Namoyandagon (Tajikistan’s lower chamber of parliament) endorsed amendments proposed by the government to the country’s law on banking activity on June 24, and the president signed the law proposing these amendments to the country’s law on banking activity on August 7.
Similar amendments have been made to the country’s law on the National Bank of Tajikistan.
The amendments made to the country’s law on banking activity also provide for strengthening control over activities of financial institutions and bringing Tajikistan’s laws in compliance with international standards.
In accordance with Tajikistan’s legislation, the close relatives are parents, spouses, children, brothers, sisters, sons, daughters as well as brothers, sisters, parents and children of spouses.
Recall, two banks – Tajprombank and Fononbank – have been liquidated in recent years. Two other banks – Tojiksodirotbonk (TSB) and Agroinvestbonk — are currently in a difficult financial situation, and therefore, they cannot operate fully.
Over the past four year, the number of lending agencies in Tajikistan has been educe by nearly half – from 137 in 2014 to current 71.
According to data from Tajik central bank, 18 banks, 20 micro credit deposit institutions, five micro credit institutions and 28 micro credit funds now operate in Tajikistan.
Meanwhile, 58 Tajik lending agencies are currently at the stage of liquidation.
