MINSK, 22 April (BelTA) – On 22 April the Board of the National Bank of the Republic of Belarus (NBRB) authorized additional measures designed to enhance the ability of commercial bank to keep providing financial support to the real sector of the economy, including to the largest companies and small and medium businesses, in conditions of the strong influence of external negative factors, BelTA has learned.
Tweaks of certain prudential requirements will stay in place through 31 December 2020. In particular, when banks calculate the sufficiency of regulatory capital, they are allowed to set the degree of credit risk with regard to credit debts and securities of systemically important borrowers at 100%. If debts are covered by government guarantees, the degree can be set at 20% for foreign-currency debts and at 0% for national-currency debts.
The banks are allowed to set the size of their conservation capital buffer at 2 percentage points (the limit was reduced from 2.5 percentage points to 2.25 on 26 March). They have the right not to reduce the tier 1 capital by the sum of intangible assets (excluding accrued depreciation) with regard to computer software, databases or their copies bought in 2020. They have the right not to reduce the tier 1 capital by this year's increase in the value of intangible assets (excluding the corresponding part of accrued depreciation) with regard to computer software, databases or their copies, which is generated as a result of modernizing these assets.
Apart from that, the liquidity coverage ratio has been reduced from 100% to 80%.
If liquidity levels drop, the central bank is ready to extend the refinancing timeframe and lend money to commercial banks for three to six months at the refinancing rate.
