MINSK, 21 September (BelTA) – The National Bank of Belarus will refine its approaches to credit risk assessment based on the recently completed Belarusian banks' assets quality review (AQR), BelTA learned from the Information and Public Relations Department of the National Bank.
BelTA reported earlier that in July 2016, the AQR, initiated by the National Bank, was completed. The main objective of the AQR was an independent assessment of the credit risk accepted by banks and the possibility of its compensation using the available capital. The AQR covered nine major banks.
“The diagnostic research made it possible to determine the directions for further improvement of the National Bank's approaches to credit risk assessment. In particular, plans have been made to adjust the criteria for the evaluation of collateral accepted by banks. At the same time, the National Bank, in concert with the Government, will take measures to ensure protection of the interests and rights of holders of the collateral,” representatives of the department said.
Moreover, measures will be taken to improve the approaches to the assessment of risks related to debt restructuring. The adjusted approaches will require banks to restructure debts taking into account the real ability of borrowers to fulfill their obligations and bearing in mind the changes in the terms and conditions of debt repayment.
Plans have also been made to improve the approaches to the evaluation of risks associated with foreign currency debts to encourage banks to grant credits in foreign currencies taking into account whether the borrower's foreign currency proceeds from core activities are likely to be enough for the fulfillment of obligations in a timely manner and in full. “This more conservative approach to the assessment of the borrowers' foreign currency risks will contribute to the de-dollarization of the Belarusian economy. At the same time, the approach does not envisage any new restrictions with respect to the provision of loans to economic entities,” the representatives of the National Bank said.
