This article examines the major challenges faced by Uzbekistan in restructuring its financial system to integrate with world financial markets. The article provides a brief discussion of Uzbekistan's financial system prior to the collapse of former USSR. It reviews the reforms made by the Uzbek government since independence, covering the banking sector, non-bank financial institutions, and the securities market of Uzbekistan. The article then focuses on the evolution of the Uzbekistan banking sector structure, policies of central bank and the approach taken to the privatization of state banks, as well as the steps taken to improve bank accounting standards and banking supervision. With respect to non-banking financial institutions, their development is reviewed, the structure and problems of current insurance market are discussed, and the approach taken to reform the pension system is presented. In the section on the securities market, the evolution of this sector is examined; state debt securities, corporate equities and bonds are considered in this evaluation, together with stock exchange trading and 'over the counter' markets. The article concludes by evaluating recent policies in the light of the unified multiple exchange rates and liberalised access to foreign exchange for current account transactions.