MINSK, 28 July (BelTA) – The main financial stability indicators in Belarus have a solid safety margin, BelTA learned from representatives of the Information and Public Relations Department of the National Bank of the Republic of Belarus (NBRB) after an expanded-participation session of the NBRB Board.
According to the source, the main financial stability indicators in the country stayed in a safe range in H1 2016 and had a solid safety margin. The payment system operated properly.
During the NBRB Board session it was noted that the monetary management policy pursued in H1 2016 — primarily effective control over money supply — coupled with macroeconomic correction measures continued providing a positive impact on the balance of payments and the net supply of foreign currency on the domestic currency market. The combination of these factors decreased inflationary pressure and enabled conditions for the incremental reduction of interest rates in the economy by reducing their inherent risk premium.
By buying foreign currency on the domestic currency market the National Bank of the Republic of Belarus has been able to reduce its forex commitments and preserve the gold and foreign exchange reserves.
Participants of the session noted that the main factor that slows down inflation at present is the sufficiently high inflationary and devaluationary expectations of economic operators. Among other things their actions rely on reports about the worsening state of the country's foreign trade. This is why it is necessary to preserve the existing monetary management policy, primarily control over money supply, said the source. It is also important from the point of view of ensuring financial stability in Belarus.
At the same time the main risks to financial stability remain considerable. Those include worsening operation of a significant number of non-financial organizations, primarily state-run ones, growing use of U.S. dollars in the economy, high credit risks in the banking industry, and the high level of fiscal risks. Participants of the session stated that it is necessary to systemically address these problems through concerted efforts of the central government, the central bank, commercial banks, municipal government agencies, and real-economy enterprises. Apart from preserving financial stability such actions are supposed to bolster the competitive ability and the overall effectiveness of the national economy.
An expanded-participation session of the Board of the National Bank of the Republic of Belarus was held on 28 July to discuss the implementation of the monetary policy in H1 2016, efforts to ensure financial stability in the country. The development of the system of corporate management, risk management, and internal control in Belarusian banks was also discussed. Representatives of the parliament, the Council of Ministers, the Belarus President Administration, concerned ministries and government agencies, heads of central departments and standalone departments of the National Bank, the Association of Belarusian Banks, the National Association of Microfinance Organizations, and the Association of Leasing Companies of Belarus took part in the session.
