Republic of Belarus: Financial System Stability Assessment

International Monetary Fund

No 2016/299, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper presents an assessment of financial system stability in Belarus. The findings reveal that the state-dominated financial sector of Belarus confronts several critical challenges. Deep and long-standing structural problems and negative external spillovers are distorting the credit channel and overall financial stability. Financial sector contingent liabilities are on the rise, accentuating an already weak fiscal situation. The government is directing a large proportion of loans from state-owned banks to unhedged state-owned companies. Foreign currency liquidity risk is high, and transition to independent and risk-based oversight of the financial sector is urgently required.

Keywords: ISCR; CR; resolution authority; asset quality; bank insolvent; bridge bank; liquidity risk; NBRB securities; risk assessment grading methodology; Belarusian bank; capital plan; parent bank; enhanced bank risk assessment grading methodology; NBRB exemption; aid bank; NBRB mechanism; mediumsized bank; bank resolution authority; Commercial banks; Loans; Currencies; Insurance companies; Liquidity; Global (search for similar items in EconPapers)
Pages: 55
Date: 2016-09-21
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