Working in Minsk the mission of the International Monetary Fund stresses "substantial progress", reached by the National Bank of Belarus in the field of banking supervision. However, the fund's experts advise not to introduce new approaches and tools of supervision, but to concentrate on updating and adapting existing ones.
«The liquidity rates will continue to play a central, though more limited role in assessing liquidity risk. The National Bank should continue to adhere strictly to the developing world best practice in this area, focusing on monitoring results and objectives of limiting the concentration of funding sources, as well as possible influence of currently proposed approaches on the ability of Belarusian banks to provide crediting growth», BelTA quotes the IMF’s analysis.
However, noting the constant improvement of the normative legal framework in this sector, the fund’s experts also mention the difficulties in the implementation of banking supervision, arising from the state direct influence on crediting that occurs due to fact that the banking sector is mainly in state ownership.
«The crediting in the frames of government programs is not always implemented on the basis of market principles, while periodically issued instructions cause distortions and undermine the application of sound principles and discipline», reads the report of the IMF.
