According to a pilot report by the Central Bank of Uzbekistan, the small and medium-sized enterprise (SME) lending market in Uzbekistan demonstrates a moderate degree of concentration. The Herfindahl-Hirschman Index (HHI) was approximately 1931.
The methodology used in the report defines low concentration as an HHI below 1500, moderate as being in the range of 1500 to 2500, and high as values above 2500. The resulting figure of 1931 falls into the moderate concentration category.
The regulator noted that this indicator suggests the presence of several operating banking institutions, with no single dominant player in the market. The Central Bank emphasized that the market structure and product development features significantly influence the service conditions and available financing options for small and medium-sized businesses.
Given the current level of concentration, the regulator deems continuous monitoring of competitive alternatives necessary, as only competitive interest rates do not determine the real value of a financial product for an enterprise.
The results of the market structure assessment are presented within the framework of a broader expertise on the quality of financial products for SMEs. Overall, these products received 43 out of 100 points. Among them, the quality of savings products was rated at 50 points, and the quality of credit products at 41 points.
The evaluation of savings instruments was based on the average interest rates for new term deposits for businesses, which reached approximately 17.4 percent overall and 16.6 percent for SMEs in rural areas.