The Central Bank interacts with both national and central banks of other states on the basis of interbank agreements. It is made up of the central body itself, plus 14 regional bank offices functioning in administrative centers around the country. Its key tasks are the implementation of state monetary policy, including stable money supply, credit, financing, and monitoring the som currency's purchasing power.

Between 1992-1996 The Bank's focus was on mutual collaboration with foreign credit organizations and attracting investment and credit resources into the country. The Bank also functions as a key link international financial organizations such as the IMF, IBRD, IAD and the Asian Development Bank.

The second level of the banking system includes:
a) The joint stock Commercial Uzpromstroybank, responsible mainly for credit to and financing of capital investments to industry, transport and communication, the building industry, trade, etc.
b) The National Bank of Foreign Economic Activity, created to increase co-operation with foreign business organizations, to facilitate export growth and currency receipts;
c) The State Commercial Bank for private savings and loans;
d) Commercial banks, set up with foreign capital to undertake business credit and financing. They are independent organizations which can lend to the limit of their resources but which can, if required, also receive credit from the Central Bank. (Such banks are currently the most active participants in the securities market). Banks can deal in various financial products including shares, bonds, deposit certificates (offered by seven banks as short term securities) and derivatives and, in a real sense, are perceived both as private traders and as formative entities of the Uzbek banking system. They can now set up branches, affiliates or other forms of representation.
On June 1, 1996, there were 30 commercial banks and more than 3,700 branches, 85% of which were the State Commercial Bank's. 22 banks (73 %) were joint stocks companies and 8 (27 %) were limited companies, including two joint and two private banks. All 30 have a license to deal with private deposits, 17 with currency operations (11 of them, general licenses, 6, domestic).

The overall volume of all capital issues in circulation in autumn 1996 was 6,580,000 million soums, including 81.5% shares, IOU (bills of exchange) 16.1 %, and deposit and saving certificates 24 %.

Since April 1994 the Uzbek Republican Currency Exchange has held weekly auctions of $US and the rate of exchange of the som has been set as a result. From October that same year, all currency payments have also been made in som. In order to develop the internal currency market the mechanism for turning the som into a freely convertible currency has been set up, although not yet put into operation. (It should be stressed that this a major concern for existing foreign investors.) The Central Bank meanwhile has a list of priority goods and raw materials for which immediate conversion of soms into freely converted currency is permitted through authorized banks and has granted them, in addition, special outlets for exchanging som into hard currency.

A network of insurance and audit companies is gradually also being developed and the biggest Stock Exchange in Central Asia, with well-equipped communication systems, has started to operate. The Exchange has 13 branches, there are 10 branches of the National Depository, 62 stock exchange shops, 159 broker counters on stocks sale, and 41 investment funds and companies.

Insurance
Measures adopted by the Government between 1993/4 have set at least a formal basis for the development of a viable insurance market. The main thrusts are towards;
Overcoming monopoly trends and setting up insurance systems, including both state companies (like the National Insurance Company "Uzbekinvest", being the official Government agent to insure foreign investments; Gosstrakh) and more than 70 insurance companies of varied backing, but with four companies with foreign capital.

Extending insurance activity using new types of products to cover political and other risks relating to developing businesses in Uzbekistan.

Setting up direct collaboration with leading foreign insurance companies and agencies. Collaboration memoranda have been signed, for example, between Tokyo Marine and Uzbekinvest; and relationships with Munich Re and with major brokers such as Willis Corroon and Bowrings been set up, and also with banks including CitiBank, Credit Swiss, EBRD and others.

Providing major projects with insurance protection via Uzbekinvest, such as the construction with the participation of Uzbekneftegaz of an oil refinery in Bukhara (consortium of Technip-Marubeni), and the upgrading of the Kokdumalak oil and gas condensate deposit (consortium of M.W.Kellogg & Nissho Iwai); the development of the tobacco industry (UzBAT, Uzbek-British joint venture); modernization of shoes manufacturing (UzSalaman, Uzbek-German joint venture); and the promotion of tourism ("Hotel Uzbekistan", Uzbek-Malaysian joint venture).

Opening, together with American International Group (AIG), a political risks insurance company Uzbekinvest International in London (with equity of US$100 million, 80% of which is Uzbekinvest, 20% AIG's). Operating with a DTI license, the company has written five policies to a sum of US$24 million.
Uzbekinvest offers clients 100% insurance cover for political risks, 90% cover for commercial risks and 95% cover for combined risks. Its rates for investment in Uzbekistan insurance are reported to compare favorably with internationally available.

Uzbekinvest operates on the basis of the international rules of the 1965 Washington Convention On Settlement of Investment Disputes and the 1985 Seoul Convention on the foundation of international agencies for insurance of foreign investment. It provides investment insurance protection against political risk for all property of domestic and foreign investors in Uzbekistan including:
a) confiscation, expropriation and nationalization;
b) Contract Repudiation insurance (CR);
c) Wrongful Calling of Guarantee Insurance (WCG);
d) Political Risk for Export Transactions (PRIET);
e) Political risk for import transactions (PRIMP);
f) War Insurance.