OREANDA-NEWS. August 25, 2010. The leading role of commercial banks in microfinancing is a specific feature of microfinance market of Uzbekistan. Commercial banks of Uzbekistan pay great attention to the support of small business and private entrepreneurship focusing on the development of entrepreneurship in rural areas by rendering microfinance services. Also, the development of small business is supported by a range of specific state programs aimed at the increase of welfare of the population.

The social role of microfinance activity of commercial banks is evidenced in rendering preference credit resources for the support of novice businessmen, the creation of new workplaces and financing the projects with the participation of female entrepreneurs as well as projects aimed to attract youth (college and high school alumni) into entrepreneurship, especially in rural areas.

Such measures first of all contribute to the realization of state social policy aimed at opening new opportunities to increase the social welfare of the population by active entrepreneurship that will result in dynamic growth of the economy.

In this context, the assessment of social impact of microfinance activity of commercial banks takes on a special significance both for the Central Bank of Uzbekistan and for the government.

This assessment is crucial for the analysis of impact of microfinance activity of commercial banks on the development of small business and the involvement of low-income groups of population into entrepreneurship, stimulation and support of economic activity of women and youth as well as total improve of welfare o the population. At that the main task of the mechanism of assessment is the study of availability of microfinance services and their diffusion all over the republic.

Presently, the Central Bank at the support of project of German Society for Technical Cooperation (GTZ) "Support to the development of microfinance sector in Uzbekistan" is developing special software for the assessment of social impact of microfinance activity of commercial banks.

The Central Bank and GTZ experts jointly developed main indicators and technical task on the development and installment of software complex to assess social impact of commercial banks' microfinancing activity.

This software complex is assigned to analyze and monitor the activity of commercial banks in financing small businesses and reflects microfinance activity of commercial banks using main indicators.

The main idea behind the development of this complex is getting feedback, constructive proposals and recommendations for the government and commercial banks to improve microfinancing in accordance with world practice.

To do this, it is intended to use the existing Central Bank informational system data by commercial banks and to generate new reports in accordance with chosen social impact indicators from the aspect of regions, banks, services, etc.

The main criteria for the achievement of goals set is the positive change of main social impact indicators.

Thus, the total assessment of social impact of commercial banks' microfinance activity will allow making general conclusions and develop recommendations on further development of microfinance services to improve their role in rising welfare of the population.