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Belarusian banks have enough liquid funds in national and foreign currencies, declared Sergei Dubkov, member of the Board of Directors of the National Bank, Head of the Central Banking Supervision Department, as he commented on possible consequences of the global financial crisis for the Belarusian banking industry.
 In his words, according to reports sent by Belarusian banks to the National Bank the country’s banking system meets prudential standards established by the law. The banks have enough liquid funds in national and foreign currencies, said the official.
The funds are enough to meet all the obligations the banks have towards their clients. It holds true both for banks with Belarusian capital and banks with foreign capital, including Russian capital.
At present foreign capital accounts for slightly less than 25% in the total authorised fund of Belarusian banks. As of September 1, 2008 the Belarusian banking industry included 23 banks with a share of foreign capital, including seven foreign-owned banks. Authorised funds of Belarusian banks have capital from Russia, Cyprus, Austria, Ukraine, the UK, the Netherlands, Switzerland, Luxembourg, Kazakhstan, Latvia and other countries.
Sergei Dubkov underscored the National Bank will continue closely monitoring the fulfilment of norms by banks and will take the necessary measures to decrease risks in the banking system.
Yet the official assumed the global financial crisis may affect the borrowing cost Belarusian banks pay on foreign markets in the mid-term future, increasing the costs by 1%. The foreign currency liquidity of Belarusian banks may shrink as banks in the countries Belarus mainly trades with reduce their credit expansion.
At present the National Bank has no information regarding the lack of funding in Belarusian banks or refusal of parent foreign banks, including Russian ones, to provide the necessary liquid funds to subsidiaries in Belarus, said Sergei Dubkov. He also remarked, no facts of slumping lending by Belarusian banks have been registered. In his words, the interest rate for loans corresponds to the present state of affairs.
Speaking about the possible effect of the situation on financial wellbeing of individuals, the source noted, there is nothing to worry about. During the existence of the national banking system all savings of individuals have always been returned regardless of the type of the bank (state or private, national or foreign), often with interest and in the currency of the deposit.
Starting 2009 Belarus citizens are guaranteed the return of their deposits of up to €5,000 inclusive. Sergei Dubkov explained 90% of Belarusian deposits are under the figure. In his words, the system will ensure safety and economic effect of the money deposited by individuals in banks.
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