Uzbekistan has the most competitive banking sector among the eight-country peer group in the ECA region (Kazakhstan, Ukraine, Georgia, Azerbaijan, Armenia, Mongolia, and Moldova), according to ECA50 Plc.

Even though the Uzbek government still owns 68% of the country's banking sector, there is active competition among 10 government-owned banks in addition to 25 dynamically expanding private and foreign banks.

Last week, the Central Bank of Uzbekistan issued a licence to Eurasian Bank, a large lender from Kazakhstan. With the most compelling multi-decade growth story in the ECA region, Uzbekistan will continue to attract strong interest from foreign banks (the likes of Santander or major GCC banks) as the government seeks further privatisation deals following the successful sale of Ipotekabank, the country's fifth largest bank, to OTP Group.

Ambitious private banks will continue to gain market share. With such strong competition, it is hard to imagine any of the two Uzbek banks gaining market dominance to the same degree as Bank of Georgia and TBC Bank have achieved in Georgia (with their massive combined 76% of the banking assets).

Uzbekistan has the lowest concentration ratio of the two largest banks among the top eight banking sectors in frontier Europe and Central Asia.

NBU and SQB, two largest banks by assets in Uzbekistan, have combined 31% of the banking assets. On the contrary, Georgia has by far the highest concentration of the top two lenders in the country: Bank of Georgia and TBC Bank have each built up 38% of the market share, which allows this dominant duo to command an unprecedented 76% of the country's banking assets.

0124 Uzbekistan banking top banks by market in ECA ECA50

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