Republic of Belarus: Financial System Stability Assessment: Update, including Report on the Observance of Standards and Codes on Banking Supervision

IMF Staff Country Reports, January 30, 2009

Source details

Canonical URL: Republic of Belarus: Financial System Stability Assessment: Update, including Report on the Observance of Standards and Codes on Banking Supervision

Update to the Financial System Stability Assessment (FSAP) on the Republic of Belarus.
Paper reveals the Belarusian financial sector has so far weathered the ongoing turmoil well, reflecting its relatively closed nature and the dominant role of state-owned banks.
The regulatory and supervisory framework has improved since the 2004 FSAP.
The planned overhaul of government-directed lending mechanisms in the context of the Stand-By Arrangement will help to ensure the long-term viability of the Belarusian banking sector.
Publication date: January 30, 2009.

The Belarusian financial sector has so far weathered the ongoing turmoil well.
Contributing factors cited:
- Relatively closed nature of the financial sector.
- Dominant role of state-owned banks.
Regulatory and supervisory framework: assessed as improved relative to the 2004 FSAP.
Structural reform: planned overhaul of government-directed lending mechanisms is identified as important for long-term banking sector viability.

Overhaul government-directed lending mechanisms (in the context of the Stand-By Arrangement) to support long-term viability of the banking sector.
Strengthen regulatory and supervisory frameworks further, building on improvements since the 2004 FSAP.
Implicit policy focus on managing risks associated with state-dominated banking and preserving financial stability amid external turmoil.

Subjects: Bank deposits, Banking, Deposit insurance, Financial crises, Financial institutions, Financial services, Insurance companies, Loans, Nonbank financial institutions.
Keywords: bank, Bank deposits, bank owner, Belarusian bank, capital position, CR, deposit, Deposit insurance, Eastern Europe, financial condition, household deposit, Insurance companies, interest rate, ISCR, lending, Loans, Nonbank financial institutions.