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APPROVED
Edict of the President
of the Republic of Belarus
No. 206, dated May 11, 2015
REPORT
of the National Bank of the Republic of Belarus
for 2014
Minsk
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Contents
Introduction
Chapter 1. Economic and financial situation in the Republic of Belarus
1.1. Macroeconomic conditions of monetary policy implementation
and banking sector development
1.2. The balance of payments and gross external debt
1.3. Financial sector
1.3.1. Banking sector
1.3.1.1. Institutional characteristics
1.3.1.2. Structure of banks’ assets and liabilities
1.3.1.3. Effectiveness and sustainability of the banking sector
1.3.2. Financial market
1.3.2.1. Foreign exchange market
1.3.2.2. Interbank credit market
1.3.2.3. Deposit and credit markets’ interest rates
1.3.2.4. Government securities market
1.3.2.5. Corporate securities market
1.3.2.6. Bank management funds
Chapter 2. National Bank’s activities
2.1. Monetary policy
2.1.1. Exchange rate policy
2.1.2. Interest rate policy and bank liquidity regulation
2.1.3. Key monetary indicators
2.2. Supervision of banks’ activities
2.2.1. Streamlining regulatory legal framework for banking
2.2.2. Off-site supervision
2.2.3. Audits of banks
2.3. Streamlining regulation of banking operations
2.3.1. Participation in the development of regulatory legal acts and
banks’ local documents on credit and deposit markets
2.3.2. Development of the system for non-cash settlements of retail
payments
2.3.3. Streamlining regulation of non-cash settlements
2.3.4. Formation of credit histories and provision of credit reports
2.4. Improving regulation of non-bank operations
2.4.1. Regulation of leasing activities
2.4.2. Regulation of microfinance organizations’ activities
2.5. Foreign exchange regulation and foreign exchange control
2.6. Improving accounting and reporting
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2.7. Cash circulation
2.8. Payment system
2.9. Development of the single settlement and information space
2.10. IT development
2.11. Improving financial literacy of population
2.12. International cooperation
2.13. Staffing and staff training
2.14. Internal audit
Chapter 3. Financial statements
3.1. Assets of the National Bank
3.2. Liabilities of the National Bank
3.3. Capital of the National Bank
3.4. Income and expenses of the National Bank
Forms of annual financial statements
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Conclusion
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Attachments
1.1. - 1.15. Tables, figures, and schedules of the implementation of the
Republic of Belarus Monetary Policy Guidelines by the
National Bank in 2014, to Chapter 1
2.1. - 2.10. Tables, figures, and schedules of the implementation of the
Republic of Belarus Monetary Policy Guidelines by the
National Bank in 2014, to Chapter 2
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Introduction
The Report of the National Bank for 2014 was prepared in accordance
with Article 46 of the Banking Code of the Republic of Belarus (hereinafter –
the “Banking Code”).
In 2014, the monetary policy of the Republic of Belarus as part of the
unified economic policy was implemented in line with the Monetary Policy
Guidelines of the Republic of Belarus for 2014 approved by Edict of the
President of the Republic of Belarus No. 586 dated December 31, 2013
(National Legal Internet Portal of the Republic of Belarus, January 1, 2014,
1/14719) (hereinafter – the “Guidelines for 2014”) having regard to the current
macroeconomic situation.
The National Bank’s activities in 2014 were aimed at attaining the main
monetary policy targets and performing the functions of the central bank
assigned thereto by legislation of the Republic of Belarus.
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Chapter 1
Economic and financial situation in the Republic of Belarus
1.1. Macroeconomic conditions of monetary policy implementation and
banking sector development
In 2014, the economic growth was assured at the expense of maintenance
of consumer demand at a rather high level and improvement of the situation in
the field of potash fertilizers production.
In the year under review the economic growth was concentrated in retail
and wholesale trade, as well as in the chemical and mining industries.
A negative impact on the stability of the economy was made by the
external factors related to the slowing-down of the economic growth and
depreciation of the national currencies in the countries which are main trade
partners of the Republic of Belarus, primarily, in the Russian Federation.
In the year under review, the volume of Gross Domestic Product
(hereinafter – “GDP”) amounted to BYR778.5 trillion, having increased (in
comparable prices) by 1.6% on the 2013 level (in 2013, by 1%).
GDP energy intensity dropped by 1% (in 2013, by 11.1%) (Attachment
1.1).
Retail turnover (in comparable prices) increased in 2014 by 6.6%
compared with 2013 (in 2013, by 18% on a year earlier).
Households’ real wages grew in 2014 by 0.3% (in 2013, by 15.8%); real
disposable money income by 0.1% (in 2013, by 16.3%).
Investment in fixed capital decreased (in comparable prices) by 9.1% on
a year earlier (in 2013, grew by 9.3%). The annual volume of investments in
fixed capital totaled BYR213.5 trillion; their share in GDP – 27.4% (32.3% in
2013).
In the technological structure of investment in fixed capital the
expenditures for construction and installation works (55.4%) were dominating,
while investments in assets (machinery, equipment, and vehicles) amounted to
32.9% and other works and costs – 11.7% of the total volume of capital
investments.
In 2014, investment in fixed capital at the expense of the budgetary funds
decreased (in comparable prices) by 39.7%, at the expense of local budgets – by
17.5% (in 2013, it grew by 52.6% and 30.6% respectively). The share of
budgetary resources in the structure of investments in fixed capital dropped
versus 2013 up to 21.2%, amounting to 16.4%.
In the year under review, organizations’ own funds and credit resources
prevailed in the financing of investment activities. Organizations’ own funds
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and banks’ credits accounted for 64.5% of all capital investments (in 2013,
62%).
According to the data provided by the National Statistical Committee, the
total volume of used credit resources, including foreign credits and credits
granted under foreign credit lines, amounted in 2014 to BYR57.5 trillion.
Industrial output grew in 2014 (in comparable prices) compared with
2013 by 1.9% (in 2013, dropped by 4.9%).
Finished stock at the enterprises’ warehouses amounted as at January 1,
2015 to BYR32.7 trillion, having risen by 10.1% since the beginning of the
year. With respect to the monthly average volume of production it amounted as
at January 1, 2015 to 75.8% compared with 74.5% as at January 1, 2014.
Agricultural output went up in 2014 (in comparable prices) by 3.1%
compared with 2013 (in 2013, dropped by 4.2%).
Transportation of cargo (excluding pipeline industry) grew by 1.3%
(in 2013, dropped by 2.2%). Cargo turnover (excluding pipeline industry) went
up by 3.3% (in 2013, dropped by 4.3%). Passenger turnover went down by
6.2% (in 2013, grew by 5%).
Financial situation of non-financial organizations was characterized in
2014 compared with 2013 by the improvement of a number of financial
indicators (Attachment 1.2).
Revenues from the sale of products, goods, works, and services amounted
in 2014 to BYR1,420 trillion, including per one average worker on
establishment – BYR651.2 million, having grown in nominal terms by 11.4%
compared with 2013. Profit from the sale of products totaled BYR100.8 trillion,
a 20.4% growth (in nominal terms) compared with 2013. Net profit grew by
14.5%; profit before tax – by 14.1%
The real values of profit from the sale of products went up, while the
indicators of revenues from the sale of products, goods, works, and services, as
well as of net profit went down.
Due to the outstripping growth of profit from the sale of products over
that of revenues and cost of products sold the return on sales went up from
6.6% in 2013 to 7.1% in 2014; return on sold products – from 8.2% to 8.9%
respectively.
The share of loss-making and low-return enterprises (in terms of return on
sales) grew in 2014 to 57%.
In 2014, 1,088 organizations (13.5%) were in the red compared with 827
organizations (10.3%) in 2013. The amount of net losses grew 1.8 times. In
2014, the amount of net loss per one organization in the red in the republic on
average totaled BYR15.8 billion (in 2013, BYR11.6 billion).
Budgetary policy in 2014 remained well-balanced.
In 2014, the Government ran a consolidated budget surplus of 1% of
GDP (compared with 0.2% in 2013).
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According to the preliminary data of the Ministry of Finance, in 2014,
consolidated budget revenues grew by 15.9%, amounting to BYR219.3 trillion
(28.2% of GDP compared with 29.2% of GDP in 2013) (Attachment 1.3).
Consolidated budget expenses amounted to BYR211.1 trillion (27.1% of GDP
versus 28.9% of GDP in 2013).
In 2014, republican budget ran a surplus in the amount of BYR5.4
trillion, or 0.7% of GDP (in 2013 it ran a deficit of 0.4% of GDP), as well.
Republican budget revenues grew in 2014 compared with 2013 by 21.2% and
totaled BYR128.2 trillion (16.5% of GDP versus 16.6% of GDP in 2013).
Republican budget expenses totaled BYR122.8 trillion (15.8% of GDP
compared with 17% of GDP in 2013).
As at January 1, 2015, the Government debt of the Republic of Belarus
amounted to BYR197.5 trillion, growing by BYR43.4 trillion (or by 28.2%)
compared with early 2014.
As at January 1, 2015, the Government domestic debt totaled BYR48.4
trillion (5.7% of GDP), having grown by BYR12.7 trillion (or by 35.5%) since
the beginning of the year.
In 2014, domestic government bonds for legal and natural persons worth
USD706.8 million and BYR2.4 trillion were placed. Since the beginning of
2014, domestic government bonds for legal and natural persons worth
USD199.6 million and BYR0.3 trillion were retired.
The Government external debt amounted as at January 1, 2015 to
USD12.6 billion (16.6% of GDP), having grown over 2014 by USD0.1 billion,
or by 1.1%, adjusted for the currency translation differences. In 2014, the
Government attracted external loans in the amount of USD5.2 billion; repaid –
USD4.6 billion.
According to the National Statistical Committee’s data, the consumer prices
grew in 2014 by 16.2% (December-on-December), in 2013 by 16.5% (Attachment
1.4).
Consumer prices and tariffs grew to the utmost in the sphere of services (by
27.5%) (in 2013, by 39.1%) compared with the growth of prices for food products
and non-foods (by 18.5% and 8.1% respectively) (in 2013, by 13.4% and 7.6%
respectively).
Consumer prices grew due to the increase in the prices for meat and meat
foods (by 3.7 percentage points), alcoholic drinks (by 1.7 percentage points), as
well as in the tariffs for housing and utility services (by 1.4 percentage points).
Consumer prices and tariffs for this goods and services grew over 2014 by 6.8
percentage points, or 42% of the total growth of consumer prices and tariffs.
The core inflation grew from 12% in 2013 to 14.6% in 2014 and, according to
the National Bank’s estimates, led to the increase in the consumer prices by 10.1%
(the share of this indicator totaled 62.3% against 47.8% in 2013). Regulated prices
and tariffs, including the prices for fruit and vegetable products, grew over 2014 by
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22.1%, contributing to a 6.1% growth in consumer prices (their share was 37.7%
compared with 52.2% in 2013).
The dynamics of core inflation was influenced by the indirect price
regulation measures as well as the monetary factors.
The following indirect measures may be defined:
- an increase in the tariffs for excisable goods (alcoholic and tobacco
products);
- a continuation of the policy of liquidation of the current system of crosssubsidization and further reduction of the list of goods and services, the prices
(tariffs) for which are regulated by the state; and
- the shock outbursts of prices for separate food products, primarily, meat
and meat foods.
At the same time, the inflationary processes were significantly influenced
by the dynamics of the Belarusian ruble exchange rate versus foreign currencies
(primarily, the US dollar and the euro), that was due to the negative impact of
external factors, in particular, a downturn in business activity and depreciation
processes in the countries which are main trade partners of the Republic of
Belarus.
Industrial producers’ prices rose by 13.5% compared with 10.7% in
2013, with prices for investment goods increasing by 7.6%, for intermediate
goods – by 13.8%, and for consumer goods – by 15.1%.
1.2. The balance of payments and gross external debt
In 2014, the balance of payments of the Republic of Belarus ran a
considerable deficit despite the substantial improvement in the results of foreign
trade in goods and services and reduction of the current account deficit.
The deficit of the current account of the balance of payments totaled
USD5.1 billion, or 6.7% of GDP, having dropped by USD2.5 billion compared
with 2013 (Attachment 1.5).
In 2014, the balance of foreign trade in goods and services improved to
minus USD0.4 billion (in 2013, it totaled minus USD2.3 billion) due to the
decreased domestic demand.
In 2014, the balance of foreign trade in goods was characterized by the
deficit in the amount of USD2.6 billion (in 2013, USD4.6 billion). At that, the
balance of foreign trade in energy goods improved by USD0.5 billion,
amounting to minus USD0.3 billion. The balance of foreign trade in
intermediate non-energy goods totaled minus USD1.1 billion, compared with
USD4 billion in 2013. The balance of foreign trade in investment goods
remained at the level of 2013; in consumer goods worsened by USD2.1 billion,
amounting to minus USD1.9 billion.
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In 2014, exports of goods dropped by 2.2%, or by USD0.8 billion,
amounting to USD35.7 billion. Reduction in the delivery of milk and meat
foods, oil and oil products, tires, load carrier vehicles, and tractors and trucks
made the major impact on the dynamics of exports. This decrease was partially
compensated by the growing exports of potash fertilizers.
Imports of goods dropped in 2014 by 6.8%, or by USD2.8 billion,
amounting to USD 38.3 billion. Declining investments in fixed capital
accounted for the decrease in the investment imports by USD0.9 billion.
Consumer imports grew by USD1.5% billion, including due to the decline in
prices (in dollar equivalent) for the consumer goods in the Russian Federation
as a result of a considerable depreciation of the Russian ruble. The major items
contributing to increase in the consumer goods imports were the imports of cars
and fruits and vegetables. The imports of intermediate goods dropped by
USD2.9 billion, including that of energy goods – by USD0.7 billion.
In 2014, the turnover of foreign trade in services grew by 5.3%,
amounting to USD13.4 billion, with the exports of services growing by 4.2%
and totaling USD7.8 billion. The imports of services grew by 7%, amounting to
USD5.6 billion. The surplus of foreign trade in services totaled USD2.2 billion
(less 2.4% compared with 2013) and partially compensated the deficit in the
trade in goods.
The balance of primary income grew in 2014 by USD0.3 billion and
stood at minus USD2.4 billion, that was caused by the decrease in incomes
designed for payments to direct investors.
The balance of secondary income was negative in the amount of USD2.3
billion against a negative balance totaling minus USD2.5 billion in 2013, that
was due to the transfer of customs duties for the exports of oil products in the
amount of USD3 billion to the Russian Federation.
According to the financial account, in 2014 net borrowing from other
countries (excluding the credit of the Government of the Russian Federation
worth USD2 billion) totaled USD2.3 billion.
Attraction of financial resources to the Republic of Belarus at the expense
of foreign direct investments amounted to USD1.8 billion. At the same time,
the inflow of foreign direct investments (excluding reinvested incomes) was
still insufficient – USD0.9 billion compared with USD0.8 billion in 2013.
Net borrowing by the banking system (excluding the change in the
National Bank’s reserve assets) worth USD0.9 billion and net attraction of
borrowed funds by the non-financial institutions worth USD0.9 billion
contributed to the positive value of net borrowing in 2014.
The planned repayment of the previously attracted credits (worth USD1.4
billion) by the Government of the Republic of Belarus led to the decline in the
value of net foreign borrowings in 2014.
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In 2014, the balance of payments ran a deficit of USD3.4 billion and was
financed by attraction of credit from the Government of the Russian Federation
worth USD2 billion and reduction of the international reserve assets by USD1.4
billion.
As at January 1, 2015, gross external debt of the Republic of Belarus
amounted to USD40.1 billion, or 52.8% of GDP, increasing over 2014 by
USD0.4 billion, or by 1.1% (Attachment 1.6).
The National Bank’s external debt grew over 2014 by USD0.9 billion,
amounting as at January 1, 2015 to USD2.2 billion. Growing obligations to
non-residents under long-term credits and loans were mainly responsible for the
increase in the National Bank’s external debt.
External debt of other Belarusian organizations attracting deposits
amounted as at January 1, 2015 to USD7.4 billion, having dropped over 2014
by 10.1%. Obligations to non-residents under credit resources in foreign
exchange accounted for the major part of their external debt (88.9%).
External debt of the other sectors (including intercompany financing)
grew over 2014 by USD0.3 billion, amounting to USD17.4 billion, or 43.4% of
the country’s gross external debt. The principal debt of the non-banking sector
(64.2%) is represented by the short-term obligations for the period of one year
and less. The main instruments of attracting external financing were trade
credits and advance payments in the amount of USD8.4 billion, or 48.6% of the
non-banking sector’s external debt.
Over the recent years the Republic of Belarus accumulated significant
volume of foreign debt, with the stable trend towards switching from the shortterm to the long-term borrowing being observed. As at January 1, 2015, longterm borrowings accounted for 63.7% of the total volume of borrowings.
1.3. Financial sector
1.3.1. Banking sector
1.3.1.1. Institutional characteristics
As at January 1, 2015, the banking sector comprised 31 banks. The
number of branches fell in 2014 from 94 to 65 owing to the streamlining by
banks of their regional structures. At the same time, the total number of banks’
organizational units (branches, banking services centers, settlement and cash
centers, and exchange offices) in the territory of the country grew over 2014 by
0.9%, amounting as at January 1, 2015 to 4,728.
As at January 1, 2015, there were seven representative offices of foreign
banks in the Republic of Belarus, including those of the Russian Federation,
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Latvia, and Germany, as well as a representative office of the Interstate Bank.
Foreign capital participated in the authorized capital of 26 banks. In 20
banks the share of foreign investors in the authorized capital exceeded 50% (of
which six banks were wholly-foreign owned).
As at January 1, 2015, the banks’ aggregate registered authorized capital
amounted to BYR33.6 trillion, having increased in 2014 by 5.7%.
Institutional development of banks in 2014 was characterized by:
- the decreased share of banks controlled by the Government in the
banking sector’s aggregate authorized capital from 78.6% to 74.8%;
- the increased share of foreign banks* in the aggregate authorized capital
of banks from 19.6% to 21.3%. The share of such banks in the aggregate
authorized capital grew from 35.2% to 36.8%. In the banking sector’s assets the
share of banks controlled by non-residents dropped from 35.2% to 33.6%.
Capital from Russia, Iran, Cyprus, Switzerland, Austria, the Netherlands,
Poland, Lebanon, Ukraine, Kazakhstan, Germany, Luxembourg, Georgia, Great
Britain, United Arab Emirates, USA, and other countries participates in the
authorized capital of Belarusian banks; and
the increased share of banks controlled by residents of private form
of ownership in the authorized capital of the banking sector from 1.8% to 4%,
with the share of these banks in the banks’ assets growing by 0.3 percentage
points and amounting to 1.3% and in the aggregate regulatory capital – from
1.8% to 3.2%.
The share of the State Committee on Property in the authorized funds of
nine banks amounted as at January 1, 2015 to BYR23.2 trillion (68.9% of the
banking sector’s aggregate authorized capital).
1.3.1.2. Structure of banks’ assets and liabilities
In 2014, banks’ assets grew by BYR86.4 trillion, or by 21.9%, amounting
as at January 1, 2015 to BYR481.5 trillion.
As at January 1, 2015, assets (liabilities)/GDP ratio totaled 61.9% (as at
January 1, 2014, 60.9%).
As at January 1, 2015, the share of banks’ claims on the economy in the
banks’ assets amounted to 72% (as at January 1, 2014, 71.7%). The share of the
long-term credits in the total debt under credits amounted as at January 1, 2015
to 73%, having decreased over 2014 by 1.3 percentage points.
In 2014 as a whole, the dynamics of growth of the banks’ claims on the
*
Foreign banks are banks in which the share of foreign investors in the authorized capital exceeds 50%
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economy was characterized by a downturn in the banks’ activity. Banks’ claims
on the economy grew in 2014 by BYR63.5 trillion, or by 22.4%, with the
parameter prescribed in the Guidelines for 2014 being 16-19% (in 2013 they
grew by 28.5%).
Following the slowing-down of the rates of lending in 2014 Q1-3, since
November the growth in the banks’ claims on the economy was accelerating.
The growing households’ demand for credits in the national currency made the
major impact on the increase in the banks’ claims in Belarusian rubles on the
economy.
In 2014, banks’ claims on the economy in the national currency grew by
BYR25.8 trillion (by 18.4%), amounting as at January 1, 2015 to BYR166.4
trillion.
In the early 2014, the rates of banks’ lending to the economy in foreign
exchange outstripped that in rubles, but later on they slowed-down to a
considerable degree due to the National Bank’s decisions aimed at constraining
lending in foreign exchange.
Banks’ claims on the economy in foreign exchange in dollar terms
reduced due to the appreciation of the US dollar exchange rate versus the euro
and the Russian ruble.
As a result, as at January 1, 2015, banks’ claims on the economy in
foreign exchange (in dollar terms) totaled USD15.2 billion, having grown over
2014 by 1.4% (by USD214.2 million) compared with 30.2% in 2013.
Banks’ funds were mainly used for lending to legal and natural persons
(Attachments 1.7 - 1.10). As at January 1, 2015, banks’ claims on the economic
entities amounted to BYR282.8 trillion, or 81.5% of the aggregate volume of
the banks’ claims on the economy. The enterprises and organizations of the
processing and trade industries, those involved in repair of vehicles, household
appliances, and items of personal use, as well as of agricultural, hunting, and
forestry industries were, mainly, responsible for the demand for credits.
The structure of growth of banks’ claims on economic entities in foreign
exchange changed over 2014 to a significant degree. Where in 2013 they went
up, mainly, due to the increase in credits, in 2014 – at the expense of growth in
the letters of credit and other assets-related operations, transactions involving
securities, and loans.
In 2014 as a whole, banks’ claims on economic entities in foreign
exchange grew by USD238 million (in 2013, by USD3,539 million), while in
December 2014 they dropped by USD368 million.
In 2014, banks’ claims on natural persons grew by BYR9.2 trillion, or by
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. Claims of banks and JSC “Development Bank of the Republic of Belarus” on the economy grew over 2014
by 23.1%.
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16.8%, amounting as at January 1, 2015 to BYR64.1 trillion.
Households’ debt under credits for real estate financing grew over 2014
by BYR6.8 trillion, or by 17.3%, amounting as at January 1, 2015 to BYR45.9
trillion. The share of soft credits amounted to 86.6%, having grown over 2014
by 2 percentage points.
Households’ debt under consumer credits grew over 2014 by BYR2.2
trillion (or by 14.7%), amounting as at January 1, 2015 to BYR17.1 trillion. The
share of these credits in the total volume of households’ debt under credits
totaled 27.1% as at January 1, 2015, compared with 27.6% as at January 1,
2014.
As at January 1, 2015, credit amounts owed by one citizen of the
Republic of Belarus averaged BYR6.6 million, or USD560.2 in equivalent,
compared with BYR5.7 million, or USD599.4 in equivalent, as at January 1,
2014.
Banks’ deposits were one of the key sources of lending to the economy in
2014.
In 2014, funds attracted from natural persons (including bank deposits,
non-residents’ funds, bank deposits in precious metals and stones, saving
certificates and bonds) rose by BYR35 trillion, or by 32.1%, amounting as at
January 1, 2015 to BYR144 trillion, with their share in banks’ liabilities
growing from 27.6% to 29.9%.
Banks’ deposits were the most popular banking products with households
for placement of temporary free funds. They grew over the year under review
by BYR32 trillion, or by 31.3%, amounting as at January 1, 2015 to BYR134.3
trillion, or 93.3% of the total volume of attracted natural persons’ funds.
Bank deposits in the national currency grew over 2014 by BYR6.6
trillion, or by 20%, amounting as at January 1, 2015 to BYR39.6 trillion, of
which bank time deposits went up by BYR4.4 trillion, or by 19.1%, amounting
to BYR27.2 trillion.
Natural persons’ deposits in foreign exchange (in ruble terms) grew over
2014 by BYR25.4 trillion, or by 36.6%, amounting as at January 1, 2015 to
BYR94.7 trillion. Time deposits* grew by BYR23.9 trillion, or by 36.7%,
amounting to BYR89.1 trillion. Natural persons’ deposits in foreign exchange
(in dollar terms) grew over 2014 by USD0.7 billion, or by 9.7%, amounting as
at January 1, 2015 to USD8 billion. Time deposits* grew by USD0.7 billion, or
by 9.7%, amounting as at January 1, 2015 to USD7.5 billion.
The share of bank deposits in foreign exchange in the aggregate volume
of households’ deposits grew over 2014 from 67.7% to 70.5%, with the share of
bank deposits in Belarusian rubles going down from 32.3% to 29.5%.

Time deposits and deposits in escrow.
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The bulk of bank deposits is placed with JSC “JSSB Belarusbank”, the
share of which in the natural persons’ deposit market totaled 47.6% as at
January 1, 2015.
As at January 1, 2015, the savings deposited with banks averaged
BYR15.2 million per citizen of the Republic of Belarus, compared with
BYR11.5 million as at January 1, 2014. This indicator grew in dollar terms
from USD1,209.9 to USD1,281.3, or by 6%.
1.3.1.3. Effectiveness and sustainability of the banking sector
With a view to preventing the development of the negative trends in the
financial market and improving the qualitative parameters of the banks’
activity, which make it possible to withstand the domestic and external
destabilizing impact, the National Bank implemented a number of
countercyclical measures, including the annulment of the tightened
requirements to the covering of risk by capital and special provisions, which
had been implemented in 2013.
The additional profit and capital, which were realized due to the measures
taken, made it possible for banks to maintain the key secure functioning
requirements at the adequate level and cover the heightened risks being in
place.
As at January 1, 2015, banks’ regulatory capital totaled BYR62.2 trillion,
having increased over 2014 by 16.1% in nominal terms. In 2014, the main
sources of the regulatory capital growth in the banking sector as a whole were:
increase in the registered authorized capital, subordinated credit (loan), growth
in profit and funds established at the expense of banks’ profit, and revaluation
of fixed assets. As at January 1, 2015, the regulatory capital/GDP ratio was 8%.
The banks’ profit amounted in the year under review to BYR7.6 trillion, a
11.3% increase compared with 2013. The key factor of profit growth was an
increase in the volume of operations involving assets.
In 2014, the banking sector’s income had the following structure: change
in the reserve – 62.8%, interest income – 26%, commission income – 5.6%,
other banking income – 4.7%, and other operational income – 0.9%.
In the structure of expenditures the allocations to reserves totaled 67.6%,
interest expenditures – 18.6%, other operational expenditures – 8.8%, other
banking expenditures – 3.5%, and commission expenses – 1.5%.
At the end of 2014, the banking sector’s return on assets was 1.7% (1.9%
in 2013) and return on regulatory capital – 13.1% (in 2013, 13.8%).
As at January 1, 2015, the values of the following banks’ secure
functioning indicators may be characterized as satisfactory:
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adequacy of banks’ regulatory capital (the ratio of the regulatory
capital and risks assumed by banks) – 17.4% (the prescribed minimum
prudential requirement for an individual bank being 10%);
ratio of liquid assets to total assets – 27.2% (the prescribed
requirement being at least 20%);
short-term liquidity (the ratio of actual liquidity to required
liquidity) – 1.9% (the requirement being at least 1);
instant liquidity (the ratio of assets on demand to liabilities on
demand) – 251.7% (the requirement being at least 20%); and
current liquidity (the ratio of current assets to current liabilities) –
133.7% (the requirement being at least 70%).
The National Bank exercised systemic monitoring of and control over the
quality of banks’ assets by means of analyzing reports obtained from banks and
carrying out on-site examinations.
Comprehensive inspections focused on banks’ activities aimed at assuring
their secure and liquid functioning and maintenance of an adequate level of bank
risks, primarily, of a credit risk.
Assets exposed to credit risk grew over 2014 by 19.8% and as at January
1, 2015 totaled BYR330.6 trillion.
As at January 1, 2015, bad assets (assets classified under risk Groups III,
IV, and V) totaled BYR14.5 trillion, increasing by 17.8% over 2014. Assets
classified under Group III amounted to BYR11.4 trillion (78.6% of the total
volume of bad assets), assets classified under Group IV – BYR2.3 trillion
(15.9%), and assets classified under Group V – BYR0.8 trillion (5.5%). The
share of the banks’ bad assets in the assets exposed to credit risk remained at
the acceptable level (as at January 1, 2014 – 4.5%; as at January 1, 2015 –
4.4%). The legal persons’ accounts payable prevailed in the bad assets.
As of January 1, 2015, a special provision to cover potential losses under
assets exposed to credit risk was formed to the extent required.
Thus, the banking sector’s stability as at year-end 2014 was characterized
as adequate.
1.3.2. Financial market
1.3.2.1. Foreign exchange market
In 2014, domestic foreign exchange market turnover totaled USD68.6
billion, exceeding by 23.6% the level of 2013. The stock market turnover
amounted to USD30.1 billion, having dropped over 2014 by 5.4%. Cash market
turnover stood at USD17.5 billion, having increased over 2014 by 3.1%.
In the year under review, resident economic entities:
- sold foreign exchange in the amount of USD22.1 billion, a drop by
16
3.7% (by USD0.8 billion) compared with 2013; and
- purchased foreign exchange in the amount of USD22.6 billion, an
increase by 0.2% (by USD0.1 billion) compared with 2013 (Attachment 1.11).
In 2014, foreign exchange purchased by resident economic entities in the
domestic foreign exchange market was, mainly, used to repay credits (USD8.7
billion or 38.5% of the total volume purchased over 2014), pay for fuel and
energy resources (USD3.3 billion or 14.6%) procure raw products and materials
(USD3 billion or 13.3%), and purchase equipment and components (USD2.4
billion or 10.7%). A total of 77.3% of the foreign exchange purchased by
resident economic entities was used for the above-mentioned purposes.
As a result, net demand for foreign exchange by resident economic
entities in 2014 stood at USD0.5 billion (in 2013, net supply of foreign
exchange totaled USD0.4 billion). At that, in January - October 2014 the
enterprises sold USD133.9 million on net basis, while in November 2014 net
purchase totaled USD178.9 million, in December 2014 – USD450 million.
In January - October 2014, the situation with regard to the foreign
exchange purchase by households was relatively stable. In the period under
review, the natural persons’ net demand for foreign exchange amounted to
USD158.6 million. However, net purchase of foreign exchange by households
grew to a significant degree in November 2014, amounting to USD324.8
million, in December it totaled USD901.6 million.
Households purchased over 2014 USD1.4 billion on a net basis (in 2013,
USD2.4 billion), with a net supply under operations involving foreign exchange
in cash totaling USD0.2 billion and a net demand under operations involving
non-cash foreign exchange amounting to USD1.6 billion (Attachment 1.12).
The operations involving the US dollars dominated the Belarusian foreign
exchange market (62.4%). The share of this currency in foreign exchange
operations fell by 6.4 percentage points compared with 2013, with the share of
euro increasing from 17.8% to 20.5%. The share of the Russian ruble in the
foreign exchange operations grew by 3.9 percentage points and totaled 16.7%.
The volume of operations involving other currencies remained insignificant
(less than 1%).
1.3.2.2 Interbank credit market
In 2014, interbank credits in the national currency continued to be one of
the main instruments regulating banks’ liquidity. 31 resident banks of the
Republic of Belarus and non-resident banks were involved in the activities in
this segment of the money market.
In the year under review the interbank credit market was characterized by
significant liquidity fluctuations. The volume of operations carried out by banks
in the interbank market totaled BYR128 trillion (in 2013, BYR102 trillion). The
17
structure of time instruments in the interbank market didn’t undergo significant
changes compared with 2013 – intraday interbank credits accounted in 2014 for
89.9% (85.6% in 2013).
At the same time, the banks continued in 2014 to attract/place resources
in the national currency in the interbank market through repo transactions. The
share of such operations increased, averaging 46.1% of the balance of amounts
owed against 15.5% in 2013, that was, mainly, caused by the active use of repo
transactions by the state-owned banks in the interbank market.
The interest rates in the intraday ruble interbank market were within the
interest rate band formed by the standing facilities designed to regulate banks’
liquidity (Attachment 1.13).
1.3.2.3. Deposit and credit markets’ interest rates
Change in the refinance rate and interest rates on liquidity regulation
instruments, as well as the situation with liquidity in the banking sector,
determined the dynamics of interest rates in the deposit and credit markets
(Attachment 1.14).
With a view to stimulating the lowering of the interest rates by banks
under credits to legal persons and ensuring the accessibility of credit resources
in the national currency for the real sector of the economy, the Board of the
National Bank of the Republic of Belarus took Resolution No. 260 dated April
22, 2014 “On the Maximum Amount of Interest Rates on Banks’ Transactions
Involving Provision of Monetary Funds (Credits) to Resident Legal Persons of
the Republic of Belarus” (National Legal Internet Portal of the Republic of
Belarus, May 7, 2014, 8/28636) (is valid till January 1, 2015), which establishes
a maximum amount of the interest rates on credits provided to the resident legal
persons of the Republic of Belarus in Belarusian rubles.
Due to the interest rate measures, which had been taken, the interest rates
in the credit and deposit market went down in January - November 2014.
In November 2014, the average interest rate on fresh bank credits* in
freely convertible currency totaled 30.2% per annum, decreasing by 11.7
percentage point compared with December 2013. The average interest rate on
fresh time deposits in Belarusian rubles amounted in November 2014 to 20.8%
per annum, dropping by 15.9 percentage points versus December 2013.
At the same time, due to the adverse processes in the country’s financial
market and the interest rate policy measures taken by the National Bank in
December 2014, the interest rates in the economy went up.
*
Belarus.
Excluding soft credits granted pursuant to decisions of the President and the Government of the Republic of
18
The interest rate on fresh bank credits* in the national currency averaged
31% per annum in December 2014. The interest rate on fresh bank deposits in
Belarusian rubles averaged 33.4% per annum in the same month.
At the same time, the interest rates on credits and deposits in foreign
exchange did not undergo any significant changes over 2014. The average
interest rate on fresh bank credits* in freely convertible currency increased over
2014 by 0.5 percentage points, totaling 9.6% per annum in December. The
average interest rate on fresh time deposits in freely convertible currency went
down from 5.4% per annum in December 2013 to 4.9% per annum in
December 2014.
1.3.2.4. Government securities market
In 2014, the Ministry of Finance placed government short-term bonds
(GKOs) and government long-term bonds (GDOs) with interest yield
denominated in Belarusian rubles in the total amount of BYR2.4 trillion, at face
value, for legal persons. In the year under review, the Ministry of Finance
retired GDOs worth BYR0.3 trillion.
In the year under review, the volume of GKOs and GDOs denominated in
Belarusian rubles in circulation grew by BYR2.1 trillion (by 14.6%) and as of
January 1, 2015 totaled BYR16.8 trillion at face value.
In 2014, the Ministry of Finance placed interest-bearing government
bonds denominated in foreign exchange in the domestic government bonds
market in the total amount of USD551,9 million and EUR90.2 million at face
value. In the year under review, the Ministry of Finance allocated USD150
million to repay the government bonds of this kind placed in the domestic
market.
Thus, the volume of interest-bearing government bonds denominated in
foreign exchange and placed in circulation in the domestic market increased:
- by USD401.9 million (by 22.7%), amounting as at January 1, 2015 to
USD2,170.5 million at face value, or BYR25.8 trillion in equivalent; and
- by EUR90.2 million (by 32.8%), amounting as at January 1, 2015 to
EUR365.2 million at face value, or BYR5.3 trillion in equivalent.
The total amount of interest-bearing government bonds denominated in
foreign exchange and placed in circulation in the domestic market grew by
BYR10.6 trillion, amounting to BYR31 trillion in equivalent.
In 2014, banks’ claims on the Government of the Republic of Belarus in
securities denominated:
*
Belarus.
Excluding soft credits granted pursuant to decisions of the President and the Government of the Republic of
19
- in Belarusian rubles reduced by BYR2 trillion (by 37%) at book value,
totaling BYR3.4 trillion as of January 1, 2015; and
- in foreign exchange grew by BYR9.3 trillion (by 69.6%) at book value,
totaling BYR22.8 trillion in equivalent as of January 1, 2015.
As at January 1, 2015, 28 banks and 37 non-bank professional
participants of the securities market were authorized to take part in government
securities trading through electronic trading system of the Joint-Stock Company
“Belarusian Currency and Stock Exchange” (hereinafter –“JSC “Belarusian
Currency and Stock Exchange”).
Due to the increase in the volume of government securities denominated
in Belarusian rubles in circulation, the secondary market witnessed in 2014 an
increase in the share of transactions involving such securities.
Thus, the total volume of government securities denominated in
Belarusian rubles traded on the floor of JSC “Belarusian Currency and Stock
Exchange” amounted in 2014 to BYR27.3 trillion, increasing by BYR11.7
trillion or by 74.7% compared with 2013. 1,905 transactions were concluded on
the exchange’s floor in 2014 (in 2013, 1,256 transactions).
The weighted average yield on the transactions involving “until
redeemed” GKOs and GDOs amounted to 7.6% per annum.
The weighted average repo rate (irrespective of the term) on the
transactions involving GKOs and GDOs stood in 2014 at 26% per annum.
In the year under review, the following transactions involving interestbearing government bonds denominated in foreign exchange and placed in the
domestic market were carried out in the secondary market:
- on the floor of the JSC “Belarusian Currency and Stock Exchange” – 56
transactions worth BYR4.5 trillion (in equivalent), with the average weighted
yield under “until redeemed” transactions totaling 11% per annum; under repo
transactions – 6.9% per annum; and
- in the over-the-counter market (hereinafter – the “OTC market”) – 10
transactions worth BYR0.25 trillion (in equivalent).
1.3.2.5. Corporate securities market
Further growth of the share of the securities debt market due to the
increased volumes of corporate bonds issue was the main trend in 2014
(Attachment 1.15). Thus, the volume of bonds issued in 2013 stood at 53.2% of
the total volume of shares and bonds issue, having grown in 2014 to 62.7%. At
the same time, the volume of government bond issue dropped from 27.4% to
9.3%. The share of the equity issue totaled 37.3% (in 2013, 46.8%).
In 2014, the volume of registered issue of joint-stock companies’
shares totaled BYR38.9 trillion, dropping by 20% compared with 2013
20
(BYR48.6 trillion).
As at January 1, 2015, the operating issuers’ shares in circulation
amounted to BYR225 trillion, increasing by 20.8% compared with January 1,
2014 (BYR186.2 trillion), with the ratio of the volume of shares in circulation
to GDP remaining unchanged and totaling as at January 1, 2015 to 28.9% (as at
January 1, 2014, 28.7%).
The annual issue of corporate bonds amounted to BYR52.9 trillion,
growing more than twice compared with 2013 (BYR25.1 trillion). In the
reporting period, 456 issues of corporate bonds of 211 issuers were registered.
Banks and enterprises were actively involved in issuing bonds. The volume of
bonds issued by banks totaled BYR34 trillion, or 64.4% of the total volume of
issued corporate bonds (in 2013, BYR14.5 trillion).
The share of corporate bonds issued in the national currency grew in 2014
to 51.2% of the total issue (in 2013, 49.7%).
Thus, as at the beginning of 2015, 737 issues of corporate bonds of 302
issuers worth BYR98.8 trillion, or 12.7% of GDP, were in circulation (as at
January 1, 2014, BYR64.6 trillion, or 10% of GDP). As a result, the volume of
corporate bonds in circulation grew over the year by BYR34.2 trillion, or by
52.9%. The volume of corporate bonds issued in the national currency
amounted as at January 1, 2015 to 64.3% of the total volume of corporate bonds
in circulation (as at January 1, 2014, 74.3%).
Active growth of corporate bonds issue in 2014 was, probably, caused by
the expiry of preferential tax treatment of incomes from operations involving
bonds issued from April 1, 2008 to January 1, 2015.
In the year under review, 64 issues of bonds of local executive and
administrative authorities worth BYR2.8 trillion were registered. The total
volume of issue was denominated in the national currency (in 2013, 46.9% of
bonds of local executive and administrative authorities was issued in foreign
exchange).
As at January 1, 2015, the volume of the above-mentioned bonds in
circulation amounted to BYR11.1 trillion, growing by 31.8% compared with
January 1, 2014 (BYR8.4 trillion). The share of bonds of local executive and
administrative authorities denominated in the national currency amounted as at
January 1, 2015 to 85% of the total volume of bonds of local executive and
administrative authorities in circulation (as at January 1, 2014, 84.2%). The
ratio of the volume of this market to GDP was 1.4%.
In 2014, initial public offering of corporate shares and bonds worth
BYR3.2 trillion was carried out on the floor of the JSC “Belarusian Currency
and Stock Exchange”, a considerable decline compared with 2013 (BYR5
trillion). In 2014, banks’ bonds worth BYR1.9 trillion (a 30% decline on 2013)
and other legal persons’ bonds worth BYR1.4 trillion (a 39.4% decline on
2013) were placed, with the volume of placed exchange-traded bonds
21
amounting to BYR2.2 trillion (BYR3.9 trillion in 2013).
In 2014, the volume of open joint-stock companies’ shares placed in the
primary market totaled BYR424.9 million (in 2013, BYR53 billion; in 2012,
BYR738.9 billion).
The weighted average yield in the primary market was:
- on banks’ bonds – 26.9% per annum; and
- on other legal persons’ bonds – 33.8% per annum.
In 2014, the total volume of the secondary stock trading totaled BYR25.3
trillion, increasing by BYR6.8 trillion compared with 2013 (BYR18.5 trillion),
including in:
- shares – BYR0.5 trillion (in 2013, BYR0.5 trillion);
corporate bonds – BYR24.7 trillion, including banks’ bonds – BYR16.2
trillion (in 2013, BYR17.3 trillion and BYR15.7 trillion respectively); and
bonds of local executive and regulatory authorities – BYR0.1 trillion
(in 2013, BYR0.7 trillion).
The volume of secondary trading increased at the expense of the growing
volumes of transactions involving corporate bonds.
The weighted average yield in the secondary market stood at:
- on banks’ bonds – 20.3% per annum; and
- on other legal persons’ bonds – 10.8% per annum.
Since 2008, the market prices of shares have been calculated based on the
results of stock trading, that makes it possible to calculate capitalization of
these securities. Thus, as at January 1, 2012, the shares market capitalization
totaled BYR9.5 trillion (3.2% of GDP), as at January 1, 2013 – BYR3.8 trillion
(0.7% of GDP), as at January 1, 2014 – BYR35.1 trillion (5.4% of GDP), and
as at January 1, 2015 – BYR6.8 trillion (0.9% of GDP). A sharp decline of the
level of capitalization as at January 1, 2015 was due to the decreased number of
shares in circulation for which the market price was calculated.
In 2014, transactions worth BYR50.8 trillion (in 2013, BYR28.9 trillion),
including purchase/sale transactions involving securities worth BYR48.6
trillion (in 2013, BYR24.1 trillion), of which transactions involving bonds in
the amount of BYR45.8 trillion, were entered into in the OTC securities
market.
1.3.2.6. Bank management funds
With a view to expanding the range of investment and banking services
being rendered and introducing the collective investment institutions into the
banks’ activities, the National Bank proposed a new financial instrument
designed to attract and place banks’ resources – bank management funds.
Resolution of the Board of the National Bank No. 178 dated March 26, 2014
“On Approval of the Instructions on the Regulation of Relations Arising as a
22
Result of Pooling Monetary Funds and/or Securities in the Bank Management
Fund on the Basis of Agreement on Trust Management of the Bank
Management Fund” (National Legal Internet Portal of the Republic of Belarus,
March 12, 2014, 8/28544) was approved for the purpose of regulation of
relations arising due to establishing bank management funds.
Bank management fund is one of the trust management forms, where a
bank as a trust manager unifies monetary funds and/or natural and legal
persons’ securities as a shared ownership for the purpose of investing in
different financial assets permitted by legislation to obtain income.
The first bank management funds started their operation in June 2014.
The Board of the National bank took a decision to register the rights of three
bank management funds of “Priorbank” JSC as a trust manager. As at January
1, 2015, the funds’ net assets totaled USD1,849.6 thousand and EUR970.3
thousand (as at July 1, 2014, USD300 thousand and EUR52 thousand).
Implementation of the bank management funds in the Republic of Belarus
will make it possible to intensify development of the country’s financial market,
expand the banks’ possibilities in attraction and placement of monetary funds,
as well as ensure the availability of the alternative to the traditional financial
market instruments for the natural persons and economic entities.
Establishment of the collective investment institutions is especially
important for the development of the corporate securities market. Additional
financing of enterprises by means of issuing shares and bonds thereby is eased
to a considerable degree in case of availability of large collective investors.
23
Chapter 2
National Bank’s activities
In 2014, monetary policy was aimed at preventing acceleration in
inflationary processes and creating conditions for a balanced development of
the Belarusian economy.
In 2014, all monetary policy instruments of the National Bank were used
to attain these objectives.
2.1. Monetary policy
2.1.1. Exchange rate policy
The exchange rate policy pursued by the National Bank in 2014 was
mainly aimed at curbing inflation, reducing devaluation expectations, and
preserving stability in the foreign currency market.
A significant depreciation of the Russian ruble against world currencies
(at year-end 2014 in particular) led to the strengthening of the Belarusian ruble
against the currency of the Russian Federation - Belarus’ major trading partner
and triggered a rapid rise in devaluation expectations and demand for foreign
currency in December 2014 which was conducive, in its turn, to the
depreciation of the national currency.
In 2014, the Belarusian ruble depreciated by 24.6% against the US dollar
(to BYR11,850/USD1) and by 9.9% against the euro (to BYR14,380/EUR1)
and appreciated by 26.2% against the Russian ruble (to BYR214.5/RUR1). The
exchange rate of the Belarusian ruble dropped by 0.4% against the currency
basket, with the cost of the currency basket amounting to BYR2,523.6 at the
beginning of 2015.
A significant growth in devaluation expectations and an increase in
demand for foreign currency, which were registered in November - December
2014, affected the dynamics of the exchange rate to the utmost. In December
2014, the Belarusian ruble depreciated by 9.7% against the US dollar and by
6.4% against the euro and appreciated by 5.5% against the Russian ruble.

The cost of the currency basket was calculated as geometric mean of bilateral exchange rates of the
Belarusian ruble against the US dollar, the euro, and the Russian ruble on a given date. Beginning on January 9, 2015,
the share of the Russian ruble in the currency basket increased to 0.4 and the share of the US dollar and the euro fell to
0.3. In this connection, beginning in 2015 the cost of the currency basket is calculated according to the new formula as
weighted geometric mean of bilateral exchange rates of the Belarusian ruble against the US dollar, the euro, and the
Russian ruble with the shares of the US dollar, the euro, and the Russian ruble accounting for 0.3, 0.3, and 0.4
respectively.
24
December 2014 saw a 40.8% increase in the real effective exchange rate
index of the Belarusian ruble, as measured by the producer price index, from
December 2013 (Attachment 2.1).
This situation resulted from an excess in the inflation rate in the Republic
of Belarus over the inflation rate in all countries - major trading partners,
excluding Ukraine, and a nominal strengthening of the Belarusian ruble against
the Russian ruble and the Ukrainian hryvnia.
2.1.2. Interest rate policy and bank liquidity regulation
In 2014, the National Bank’s interest rate policy was aimed at
maintaining the level of real interest rates which would ensure price stability
and preservation of the depositors’ savings. For the purpose of increasing the
availability of credits to households and economic entities the National Bank’s
refinance rate was gradually reduced, since early 2014, taking into account the
situation in the economy and monetary sphere and stood at 20% per annum
beginning on August 13, 2014.
In 2014, a policy of gradual reduction in interest rates on the instruments
designed to provide liquidity – from 35% per annum in early 2014 to 24% per
annum beginning on August 13, 2014 – was pursued for the same purpose. As a
result of gradual reduction, the interest rate on the operations designed to
withdraw liquidity stood at 17% per annum beginning on October 6, 2014.
The National Bank exerted an impact on liquidity of the banking system
and dynamics of interest rates in the money market by dint of standing facilities
designed to withdraw liquidity, bilateral operations, open market operations, as
well as reserve requirement ratio regulation.
If and when required, the National Bank carried out operations designed
to provide liquidity by dint of bilateral operations conducted on market terms at
interest rates equal to the upper limit of the National Bank’s interest rate band
and for short periods (mainly 1 - 3 days), taking into account banks’ compliance
with conditions necessary to obtain the National Bank’s refinancing. An excess
of liquidity was withdrawn through standing deposit facilities, deposit auctions,
and auctions to issue short-term bonds which were conducted at interest rates
close to the refinance rate.
In 2014, the average daily balance of debt on operations designed to
maintain current liquidity of the banking system amounted to BYR224.6
billion. In the reporting year, banks’ average daily balance of operations
designed to withdraw liquidity of the National Bank stood at BYR1,657.9
billion.
Beginning on February 1, 2014, the National Bank reduced the required
reserve ratio from 10% to 9% in respect of legal persons’ funds attracted in the
25
national currency and from 14% to 13% in respect of funds attracted in foreign
currency.
The dynamics of the refinance rate and interest rates on the National
Bank’s instruments had an impact on the interest rate in the intraday interbank
market in the national currency which stood at 18.6% per annum in November
2014, a 15 percentage points decrease on December 2013.
Because of the rapid rise in demand for foreign currency from
households, which was accompanied by the outflow of term ruble deposits, the
National Bank had to take in December 2014 appropriate interest rate policy
measures along with macroeconomic adjustment measures.
Beginning on December 19, 2014, the interest rate on standing facilities
designed to provide liquidity was temporally raised to 50% per annum. This
brought about an increase in the interest rate in the intraday interbank market in
the national currency which amounted to 27.4% in December 2014, an 8.8
percentage points increase on November 2014.
This decision was aimed at attaining the level of interest rates which
would ensure financial and macroeconomic stability in the economy as well as
maintaining the balance of depositors and borrowers’ interests.
2.1.3. Key monetary indicators
An increase in the broad money supply (M3) in 2014 accounted for
23.9%, or BYR46.1 trillion, of which the ruble money supply (M2*) grew by
14.5%, or BYR11.5 trillion (Attachment 2.2).
In 2014, the growth of M2* (by BYR4.4 trillion, or 19.1%) was mainly
due to an increase in term deposits held by natural persons. At the same time,
the volume of securities issued by banks in the national currency (outside bank
circulation) was falling (Attachment 2.3).
In 2014, the share of natural persons’ term deposits in the structure of the
ruble money supply grew by 1.2 percentage points. The share of cash in
circulation shrank by 0.2 percentage points, the share of natural persons’
transferable deposits increased by 0.8 percentage points, the share of legal
persons’ transferable deposits decreased by 1.4 percentage points, the share of
legal persons’ term* deposits grew by 1.2 percentage points, and the share of
securities issued by banks in the national currency (outside bank circulation)
declined by 1.6 percentage points.
In 2014, the share of the ruble constituent of the broad money supply
declined from 41% to 37.9%.

Term bank deposits and bank deposits in escrow.
Term bank deposits and bank deposits in escrow.

26
As of January 1, 2015, foreign currency deposits amounted to USD11.6
billion in dollar terms, a USD0.3 billion, or a 2.8% increase in 2014.
The velocity of the broad money supply circulation fell, on an annualized
basis, to 3.6 circulations, or by 2.3% (to 3.7 circulations, or by 6%, in 2013).
The velocity of the ruble money supply circulation increased, on an annualized
basis, to 8.7 circulations, or by 2.8% (decreased to 8.5 circulations, or by
11.2%, in 2013).
In 2014, the ruble money issue (an increase in the ruble money base)
accounted for BYR4.3 trillion. The National Bank’s net claims on banks grew
by BYR2.8 trillion, the National Bank’s net claims on the Government of the
Republic of Belarus – by BYR0.4 trillion, and the National Bank’s net claims
on other sectors of the economy – by BYR0.1 trillion. Foreign exchange
operations carried out by the National Bank and the Government of the
Republic of Belarus totaled BYR0.5 trillion in ruble terms.
As of January 1, 2015, international reserve assets of the Republic of
Belarus amounted to:
- USD5.1 billion in compliance with the IMF’s methodology, a USD1.6
billion decrease in the year under review; and
- USD5.7 billion on the national definition, a USD1.5 billion decrease in
the year under review.
As of January 1, 2015, the amount of gold and foreign exchange reserves
covered 1.4 months of imports.
A decline in international reserve assets was mainly due to the full
repayment of the Government of the Republic of Belarus and the National
Bank’s external and internal obligations in foreign currency. Attracting external
borrowings by the Government of the Republic of Belarus and placing foreign
currency bonds in the domestic market, as well as refinancing obligations by
the National Bank were conducive to maintaining international reserve assets.
2.2. Supervision of banks’ activities
2.2.1. Streamlining regulatory legal framework for banking supervision
In 2014, the work was going on to streamline regulatory legal framework
governing banking supervision and bring it into line with international
standards and experience of practical application.
As part of the continuous work to improve mechanisms for banking
regulation, the following resolutions were adopted:
Resolution of the Board of the National Bank of the Republic of
Belarus No. 193 “On Amending and Modifying Recommendations Concerning
Methodology for Auditing Banks and Non-bank Financial Institutions by the
National Bank of the Republic of Belarus and Making Risk Assessment” dated
27
March 28, 2014 which updated recommendations taking into account new
requirements for corporate governance organization, risk management and
internal control systems, and other prudential requirements imposed by the
Banking Code and the National Bank’s regulatory legal acts; and
Resolution of the Board of the National Bank of the Republic of
Belarus No. 281 “On Approving Recommendations Concerning Methodology
for Conducting the Remote Analysis” dated April 28, 2014 which focuses on
the most important areas of the analysis, specifically on the study of the
resource base (including equity capital and attracted funds), risks assessment,
regulatory capital adequacy, and bank performance (profitability).
In addition, the requirement to obtain the National Bank’s permission to
purchase a unitary enterprise as a property complex by a bank and/or non-bank
financial institution was imposed, procedures for approving names of banks and
non-bank financial institutions by the National Bank were defined, and
eligibility requirements for independent directors were adjusted.
With a view to developing the financial market, the National Bank set
differentiated requirements for the size of the regulatory capital of non-bank
financial institutions depending on risk exposure of bank operations carried out
thereby and the level of threat to the depositors and creditors’ interests.
As part of the planned work that is carried out by the National Bank with
a view to creating an environment for fair competition in banking,
discontinuing the practice of granting banks privileges and preferences, and
eliminating differentiated approaches to the regulation of banking and
supervision thereof, banks were denied the right to make decisions about the
classification of due debt and prolonged not more than one time debt under
credits secured by guarantees of the Government of the Republic of Belarus and
local executive and administrative bodies as well as contingent liabilities
secured by the above-mentioned guarantees into risk Group I regardless of the
debtor’s financial standing.
For the purpose of raising awareness of banking risks among households
and organizations, procedures were clarified for ensuring that liquidation
commission makes information about bank liquidation, procedures and the
deadline for lodging claims by its creditors available.
In order to resist an impact of external destabilizing factors, the National
Bank adopted a package of countercyclical regulation measures designed to
abolish increased capital requirements for individual categories of assets as well
as establish, at a higher rate, special provisions for credit risk on consumer
loans. Banks’ capital and profit released as a result of the increased
requirements abolition were channeled to cover heightened risks that emerged
late in 2014.
Within the framework of implementing Basel III capital, leverage, and
liquidity international standards, methods for calculating capital, leverage, and
28
liquidity indicators were improved having regard to new approaches taken by
the Basel Committee as well as law enforcement practice of introducing new
performance indicators of Belarusian banks and banks’ proposals.
In 2014, values of Basel III capital, leverage, and liquidity indicators as
well as liquidity monitoring instruments were analyzed on a quarterly basis.
2.2.2. Off-site supervision
Taking the whole range of supervisory response measures aimed at
ensuring safe and liquid functioning of banks, protecting bank creditors’
interests, and minimizing banks’ failure risk and costs associated therewith
remained the main task of the off-site supervision.
In 2014, the National Bank was monitoring, on an ongoing basis, banks’
compliance with safe functioning requirements and other prudential norms and
restrictions. The work was continued to provide equal conditions for
functioning of banks and ensure fair competition. Particular emphasis was
placed on the financial standing of banks where the state plans to retain the
controlling stake (first and foremost in JSC “Belagroprombank” and JSC “JSSB
Belarusbank” which bear the main burden of servicing the Belarusian
economy). Financial standing of the above-mentioned banks and additional
measures to ensure their safe and liquid functioning were regularly addressed in
the meetings of the Board of the National Bank.
An ongoing work to increase banks’ capitalization (in the first place to
remedy failure to comply with minimum regulatory capital requirement) and
improve corporate governance was carried out with management and owners of
banks. Banks’ measures to increase the regulatory capital were controlled on an
ongoing basis.
In 2014, a purposeful work was underway to tighten the off-site
supervision in terms of improving the analysis of banks’ performance indicators
and their compliance with safe functioning requirements and identifying
negative trends and crisis developments at early stages. The work was
continued to improve the National Bank’s information and analytical system for
the purpose of automating and accelerating the processing of banks’ financial
and other reporting data.
Based on the results of the analysis of reports and other information
received, in 2014 the National Bank took against banks, on the basis of
motivated judgment, appropriate supervisory response measures such as
sending instructions to remedy identified violations and take adequate
enforcement actions, as well as holding meetings with banks’ executive bodies
and sending them (banks’ Supervisory Boards and executive bodies) letters to
29
halt negative trends and avoid (prevent) situations threatening the depositors
and other creditors’ interests.
The National Bank continued to constructively cooperate with audit
organizations and the Association of Belarusian Banks
2.2.3 Audits of banks
In accordance with audit plan for 2014, the National Bank conducted fullscope audits of TC Bank, “Fransabank” OJSC, Alfa-Bank, CJSC VTB Bank
(Belarus), OJSC “Paritetbank”, Bank BelVEB OJSC, and JSC “Eurobank”.
The results of audits of TC Bank, “Fransabank” OJSC, and OJSC
“Paritetbank” were considered in the meetings of the Board of the National
Bank.
The results of audits of the rest of the banks were considered in the
meetings of the Committee on the Banking System Stability following which
the banks were sent instructions to remedy violations and recommendations to
improve risk assessment and corporate governance.
Unscheduled limited-scope audits were conducted as follows:
- JSC “MTBank” (under orders from law enforcement authorities to
consider the accrual of interest on plastic cards);
- OJSC “Belarusky Narodny Bank” (on the basis of the judicial
authorities’ letter about compliance with laws at a time of making a decision to
suspend payments from the client’s current account);
- JSC “BSB Bank” (at the bank’s request to control the implementation of
the National Bank’s recommendations and the elimination of violations
identified during the full-scope audit conducted in 2013;
- OJSC “Paritetbank” (under orders from law enforcement authorities to
study an issue of lending to a legal person);
- Alfa-Bank (under orders from law enforcement authorities to analyze an
operational incident in “Alfa-click” system);
- “Belinvestbank” JSC (at the bank’s request to consider issues of asset
quality, liquidity risk, cash office work, foreign exchange control and antimoney laundering, and recognition of revenues in accountancy); and
- CJSC “Absolutbank” (asset quality issues were studied on the initiative
of the Off-site Supervision Department of the Banking Supervision
Directorate).
In addition, the National Bank participated in making an inventory of the
assets held by “Bank Moscow–Minsk” JSC, monitoring the citizens’ operations
involving deposit accounts held with JSC “Belagroprombank”, preparing the
working group’s materials on individual issues of operation of “Belinvestbank”
JSC (as regards lending to natural persons), and analyzing interest rates and
procedures for recognizing revenues in accounting of JSC “Belagroprombank”.
30
2.3. Streamlining regulation of banking operations
In 2014, the National Bank continued to streamline regulation of banking
operations with a view to improving the sustainability and the development of
the banking sector.
2.3.1. Participation in the development of regulatory legal acts and banks’
local documents on credit and deposit markets
In the reporting year, the National Bank took an active part in
streamlining legislation on banks’ participation in the development of the
Belarusian economy (Attachment 2.4).
With a view to reducing credit risks and making a more qualitative
assessment of the creditworthiness (solvency) of natural persons at a time of
lending and carrying out financing operations against the assignment of a
monetary claim (the factoring) on a monetary obligation of a natural person, the
Board of the National Bank of the Republic of Belarus took in April 2014
Resolution No. 253 “On Some Issues Relating to Lending to Natural Persons
and Financing Against the Assignment of a Monetary Claim (the Factoring)”
dated April 18, 2014 (National Legal Internet Portal of the Republic of Belarus,
April 25, 2014, 8/28604) in accordance with which a bank has to make, based
on the certificate or any other document certifying the source of the natural
person’s income, an assessment of the creditworthiness of the natural person for
the purpose of making a decision about granting him/her a loan. The above
requirement is also applicable when a bank enters into a factoring agreement
with a legal person or an independent entrepreneur who is engaged in retail
trade under a monetary obligation of a natural person. At a time of lending to
natural persons banks were recommended to make use of the forms of income
certificates set out in legal acts.
In the course of 2014, banks and the Association of Belarusian Banks
were sent relevant recommendations for the purpose of protecting depositors
and borrowers’ interests, raising the quality of retail banking, and improving
banks’ work to provide information on lending to natural persons and attracting
their monetary funds on deposits.
In 2014, efforts were taken to develop housing lending through
improvements in the mortgage institution and mortgage-backed securities. The
National Bank formulated proposals to create a national agency for housing
mortgage lending and devised a mechanism for functioning of the system of
housing construction savings in the Republic of Belarus. These activities
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resulted in drafting Edict of the President of the Republic of Belarus “On
Housing Construction Savings” which is planned to be finalized in 2015 Q1.
As part of endeavors to improve procedures for financing exports of
goods (works and services), the National Bank made proposals to broaden
government support to financing operations against the assignment of a
monetary claim (the factoring) as well as streamline procedures for making
decisions about granting export loans with government support. These
proposals are outlined in Edict of the President of the Republic of Belarus No.
218 “On Amending and Modifying Edicts of the President of the Republic of
Belarus” dated May 7, 2014 (National Legal Internet Portal of the Republic of
Belarus, May 9, 2014, 1/15006) and Resolution of the Council of Ministers of
the Republic of Belarus and the National Bank of the Republic of Belarus No.
1171/20 “On Amending Resolution of the Council of Ministers of the Republic
of Belarus and the National Bank of the Republic of Belarus No. 1209/9 as of
August 21, 2008” dated December 12, 2014 (National Legal Internet Portal of
the Republic of Belarus, December 17, 2014, 5/39834).
As part of measures to curb high rates of foreign currency lending to
economic entities, the National Bank tightened, beginning on January 16, 2014,
procedures for granting foreign currency loans that provide for foreign currency
lending to economic entities with a view to making settlements with nonresidents of the Republic of Belarus solely and with residents of the Republic of
Belarus – only in settlement of natural gas supplied by OJSC “Gazprom
Transgaz Belarus”.
The National Bank took measures to ensure that loans are available for
small and medium-sized entrepreneurs engaged in production activities. In
certain cases banks may lend to the above-mentioned entities out of credit
(loan) funds attracted on the basis of agreements with international and foreign
financial and credit institutions, excluding previously imposed restrictions.
With a view to providing an opportunity for foreign currency lending to
economic entities earning foreign currency revenues from the sale of goods
(works and services) which are sufficient for discharge of their obligations
under loan agreements, in July 2014 the National Bank took decision to lift
earlier imposed restrictions on foreign currency lending by banks to this
category of economic entities for the purpose of making settlements with
residents of the Republic of Belarus.
To reduce bank interest rates on national currency loans extended to
resident legal persons of the Republic of Belarus and improve access to credit
resources for the real sector of the economy, the Board of the National Bank of
the Republic of Belarus passed Resolution No. 260 “About Maximum Interest
Rates on Bank Operations Designed to Extend Monetary Funds (Loans) to
Resident Legal Persons of the Republic of Belarus” dated April 22, 2014
(National Legal Internet Portal of the Republic of Belarus, May 7, 2014,
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8/28636) which sets maximum interest rates on the above-mentioned loans (was
in effect until January 1, 2015).
In 2014, the state administration bodies (such as the Ministry of
Economics, the Ministry of Finance, the National Bank, and the Ministry of
Agriculture and Food) in consort with banks and JSC “Development Bank of
the Republic of Belarus” carried out work to devise a plan for financing
government programs and measures aimed at improving the utilization
efficiency of credit resources, including in the agro-industrial complex.
These endeavors led to the enactment of Resolution of the Council of
Ministers of the Republic of Belarus No. 264 “On Financing Government
Programs and Measures in 2014” dated March 26, 2014 (National Legal
Internet Portal of the Republic of Belarus, April 2, 2014, 5/38613) which
approved the amounts of lending by banks and JSC “Development Bank of the
Republic of Belarus” to government programs and measures in the industrial
sector and the agro-industrial complex as well as listed organizations of the
agro-industrial complex where earlier started construction (reconstruction) of
commercial dairy farms neared completion in 2014.
In July 2014, the National Bank in consort with banks made an inventory
of investment projects – implemented (or anticipated to be implemented) in
2014 with credit support from banks within the framework of government
programs and measures – in terms of their efficiency and taking into account
the resource potential of banks. Pursuant to Resolution of the Council of
Ministers of the Republic of Belarus No. 745 “On Financing Government
Programs and Measures” dated August 1, 2014 (National Legal Internet Portal
of the Republic of Belarus, August 8, 2014, 5/39218) the plan for financing
government programs and measures in 2014 was revised. In addition, the list of
organizations of the agro-industrial complex – where earlier started
construction (reconstruction) of commercial dairy farms neared completion in
the year under review – was made short. The need for lending reduced from
BYR4.76 trillion to BYR3.47 trillion as a result of the above-mentioned
measures.
With a view to improving the utilization efficiency of monetary funds
allocated for implementing government programs and activities, in 2014 Q4 the
Ministry of Economics, the Ministry of Finance, the National Bank, and the
Ministry of Agriculture and Food in consort with banks and JSC “Development
Bank of the Republic of Belarus” continued work to devise a plan for financing
government programs and activities which resulted in the enactment of
Resolution of the Council of Ministers of the Republic of Belarus No. 1021 “On
Financing Government Programs and Activities in 2015” dated October 29,
2014 (National Legal Internet Portal of the Republic of Belarus, November 7,
2014, 5/39642).
33
To provide equal conditions for participation of banks in financing
government programs and measures as well as competitive selection by banks
of economic entities financed within the framework of government programs
and measures, the Council of Ministers of the Republic of Belarus and the
National Bank of the Republic of Belarus passed Resolution No. 134/1 “On
Amending and Modifying Resolution of the Council of Ministers of the
Republic of Belarus and the National Bank of the Republic of Belarus No.
894/7 as of June 18, 2008” dated February 17, 2014 (National Legal Internet
Portal of the Republic of Belarus, February 20, 2014, 5/38447) pursuant to
which the list of banks authorized to service government programs was
expanded.
In 2014, efforts were taken to improve lending efficiency, most notably
the efficient use of funds channeled to finance government programs. As many
as 235 draft regulatory legal acts on extending loans to economic entities within
the framework of financing government programs and measures were submitted
to the National Bank and 144 draft regulatory legal acts were approved.
The National Bank imposed more strict requirements for the quality and
the effectiveness of banks’ local evaluation of investment projects (most
notably projects involving government support). Relevant local regulatory legal
acts aimed at maintaining the quality of risk management, limiting the growth
of bad assets, including by dint of making an assessment of borrowers’
creditworthiness and the effectiveness of financed projects, and implementing a
package of measures to cope with bad assets at a time of extending loans for the
implementation of investment projects were approved under resolutions of
banks’ management boards.
In 2014, the deferment by banks and JSC “Development Bank of the
Republic of Belarus” of discharge of obligations under principal debt owed by
legal persons as well as the deferment (payment by installments) of
indebtedness under principal debt owed by organizations of the agro-industrial
complex were controlled within the framework of implementing Edict of the
President of the Republic of Belarus No. 348 “About Measures to Enhance the
Operational Efficiency of Organizations of the Agro-industrial Complex” dated
July 17, 2014 (National Legal Internet Portal of the Republic of Belarus, July
23, 2014, 1/15161).
2.3.2. Development of the system for non-cash settlements of retail
payments
The number of bank payment cards (hereinafter – “cards”) that have been
put into circulation as of January 1, 2015, totaled 12.3 million (a 4.6% increase
in 2014), of which 5.2 million cards of the domestic payment system BelCard
(42.3% of the total number of cards) and 7.1 million cards of international
34
payment systems, including 5.2 million cards of payment system VISA (42.3%
of the total number of cards) and 1.9 million cards of payment system
MasterCard (15.3% of the total number of cards).
As many as 4,362 ATMs (a 6.7% increase in 2014), 3,670 self-service
payment and reference terminals installed by banks (a 2.3% increase in 2014)
and 91,784 payment terminals operating in 64,764 trading (servicing)
organizations (a 30.7% increase in 2014) were functioning in the Republic of
Belarus as of January 1, 2015.
As of January 1, 2015, the share of non-cash transactions in transactions
involving cards amounted to 72% in terms of their number and 25.9% in terms
of their amount (as of January 1, 2014, these indicators stood at 68.4% and
21.5% respectively).
In 2014, the share of the non-cash turnover in the retail turnover stood,
according to the National Statistical Committee, at 18.7% (a 2.7% increase in
2014) and the share of the non-cash turnover in the volume of paid services to
households – 19.5% (a 5.1% increase in 2014).
In 2014, efforts to develop the system for non-cash settlements of retail
payments were taken within the framework of the joint action plan for 2013 2015 worked out by government agencies and financial market participants to
develop the system for non-cash settlements of retail payments involving
modern electronic payment instruments and a means of payment in the
Republic of Belarus which was approved by Resolution of the Council of
Ministers of the Republic of Belarus and the National Bank of the Republic of
Belarus No. 246/4 dated April 1, 2013 (National Legal Internet Portal of the
Republic of Belarus, April 6, 2013, 5/37085).
For the purpose of increasing the share of non-cash settlements made by
natural persons, Edict of the President of the Republic of Belarus No. 493 “On
Development of Non-cash Settlements” dated October 16, 2014 (National Legal
Internet Portal of the Republic of Belarus, October 18, 2014, 1/15353) was
passed where the limit on the amount of payment in cash (1,000 base units) and
measures to encourage non-cash settlements were identified.
In order to increase the number of software and hardware infrastructure
facilities for servicing card holders in the Republic of Belarus, the Council of
Ministers of the Republic of Belarus and the National Bank of the Republic of
Belarus passed Resolution No. 489/7 dated May 21, 2014 (National Legal
Internet Portal of the Republic of Belarus, May 23, 2014, 5/38883) which
amended and modified Resolution of the Council of Ministers of the Republic
of Belarus and the National Bank of the Republic of Belarus No. 924/16 dated
July 6, 2011 (National Register of Legal Acts of the Republic of Belarus, 2011,
No. 80, 5/34128). The changes were aimed at expanding the list of trading
(servicing) organizations that are required to install payment terminals to pay
for goods (services) by means of cards.
35
The following regulatory legal acts were passed for the purpose of
preventing fraud involving modern payment instruments and protecting
interests of the citizens who fell victim to scam:
Resolution of the Board of the National Bank of the Republic of
Belarus No. 92 “About the Implementation by the National Bank of the Joint
Action Plan for 2013 - 2015 Worked out by State Administration Bodies and
Financial Market Participants to Develop the System for Non-cash Settlements
of Retail Payments Involving Modern Electronic Payment Instruments and a
Means of Payment in the Republic of Belarus” dated February 19, 2014, which
recommends banks to apply clients’ zero liability principle in cases where
monetary funds are fraudulently debited from their accounts without card
holders’ consent as well as compensate for monetary funds within 30 days of
receipt of a client’s application in cases where transactions involving cards are
carried out in the Republic of Belarus and 60 days in cases where the
transactions are carried out abroad; and
Resolution of the Board of the National Bank of the Republic of
Belarus No. 343 “About Issues Concerning Bank Payment Cards Circulation
Safety and Software and Hardware Infrastructure Facilities Operation” dated
May 26, 2014 (National Legal Internet Portal of the Republic of Belarus, June
13, 2014, 8/28757) which is aimed at phased switching to the issue of cards
based on the international EMV chip technology, improving safety of
transactions involving cards and households’ confidence in this payment
instrument, and inspiring loyalty to non-cash payments.
To expand the range of banking services contributing to an increase in the
share of non-cash settlements of retail payments, the Board of the National
Bank of the Republic of Belarus adopted Resolution No. 475 “On the Results of
Implementing the Republic of Belarus Monetary Policy Guidelines for 2014 H1
and Tasks of the Banking System Relating to Further Implementation Thereof”
dated July 25, 2014 which recommends banks to gradually increase the number
of card holders - natural persons who are users of Internet banking and other
systems for remote banking, and increase their share to 50% of the total number
of clients by January 1, 2016.
In the year under review, the e-money market in the Republic of Belarus
rapidly developed given the global trends.
Belgazprombank,
OJSC
“Technobank”,
OJSC
‘Paritetbank”,
“InterPayBank” JSC, PJSC “Trustbank”, “Priorbank” JSC, “Belinvestbank”
JSC, and JSC “JSSB Belarusbank” issue e-money in the Republic of Belarus.
With a view to streamlining the regulatory legal framework governing the
conduct of operations involving cards and e-money, the Board of the National
Bank of the Republic of Belarus adopted Resolution No. 843 “On Amending
and Modifying the Instructions on Procedures for Carrying out Operations
Involving Bank Payment Cards” dated December 31, 2014 (National Legal
36
Internet Portal of the Republic of Belarus, February 4, 2015, 8/29547) which
deals with issues relating to the use of contactless technologies and payment
technologies based on mobile payment terminals involving cards, the
cancellation of the mandatory issue of paper card checks in cases where the
printout of the card-check is meaningless, and the introduction of co-branding
and co-badging cards.
In addition, with a view to preventing fraud involving modern payment
instruments and protecting interests of the citizens who fell victim to scam, the
resolution established the principle of card holders - natural persons’ zero
liability in cases where fraudulent transactions are carried out involving clients’
accounts. A balanced approach to addressing such issues was offered which
provides for setting deadlines for filing a written statement on an unauthorized
transaction by a client, considering such statement by a bank, and making
decision about repayment of monetary funds taking into account particular
circumstances and information available to a bank.
2.3.3. Streamlining regulation of non-cash settlements
In 2014, the National Bank’s regulatory legal acts were brought into line
with provisions of:
Law of the Republic of Belarus “On Measures to Prevent Money
Laundering and Terrorism Financing and Financing the Proliferation of Mass
Destruction Weapons” dated June 30, 2014 (National Legal Internet Portal of
the Republic of Belarus, July 3, 2014, 2/2163) in terms of providing additional
details in the payer’s settlement documents, verifying, to the extent applicable,
that information contained in payment instructions is consistent with
information contained in identity papers of the payers, and filing applications
for making non-cash transfers abroad and receiving them from abroad; and
Edict of the President of the Republic of Belarus No. 87 “On
Amending and Modifying Edicts of the President of the Republic of Belarus on
State Social Insurance” dated February 21, 2014 (National Legal Internet Portal
of the Republic of Belarus, February 26, 2014, 1/14842) in terms of settling
issues relating to the transfer of occupational pension insurance contributions to
the budget of the state non-budgetary fund of social protection of the population
of the Republic of Belarus simultaneously with payment of wages within the
prescribed minimum and defining the duration of the order for reservation of
monetary funds for wages within the prescribed minimum.
The National Bank participated in drafting Edicts of the President of the
Republic of Belarus: “On Amending and Modifying Individual Edicts of the
President of the Republic of Belarus” (in terms of settling issues relating to the
functioning of special accounts during the construction of housing for citizens),
“On Reorganizing Collective Farms (Agricultural Production Cooperatives)”
37
and “On Measures to Improve the Effectiveness of Organizations of the Agroindustrial Complex” (in terms of organizing banks’ work to collect – from legal
entities which acquired, in accordance with the established procedure, rights
and obligations of insolvent agricultural organizations – installment debt on
long-term investment loans as well as loans for the purchase of agricultural
machinery and equipment), “On Amending and Modifying Edict of the
President of the Republic of Belarus No. 359 dated June 30, 2008” (in terms of
organizing the collection of debt on the loans extended by banks against
guarantees of the Government of the Republic of Belarus), “On Amending and
Modifying Individual Edicts of the President of the Republic of Belarus” (in
terms of determining the rates of recovery from the contractor, the customer,
and the developer of compensation for losses in the amount of unreasonably
received preferential loans during the construction (reconstruction) of housing),
and Law of the Republic of Belarus “On Amending and Modifying the Tax
Code of the Republic of Belarus”.
In 2014, endeavors were made to:
organize an on-line interaction of the banking system with
individual state administration bodies at a time of transmitting e-documents on
direct debiting from accounts and suspending (cancelling the suspension of)
account transactions;
streamline regulations governing procedures for making settlements
from the accounts held by business entities if monetary funds in the account are
arrested and account transactions are suspended;
streamline regulations governing enforcement proceeding, the
bailiffs’ activities, as well as notary activities (in terms of foreclosing on
debtor’s monetary funds and property as well as procedures for functioning of a
special account opened for the notary);
prohibit the practice of lodging claims on special accounts and
accounts for settlements of letters of credit for uncontested recovery of
payments into the budget;
ensure that banks exercise legal control (program control) of the
details provided in the payer’s (claimant’s) payment instructions on payments
into the budget and banks’ electronic payment documents for their compliance
with the directories;
improve regulation of the money transfer market, including as part
of international cooperation with the states whose residents are owners of
money transfer systems operating in the Republic of Belarus (the Central Bank
of the Russian Federation and the National Bank of the Republic of Belarus
entered into the Agreement on Cooperation in the field of joint supervision
(oversight) of payment systems);
38
broaden the National Bank’s powers to regulate money transfers by
making relevant amendments and modifications to the Statute of the National
Bank of the Republic of Belarus and the Banking Code; and
learn from experience gained by the Russian Federation in creating
a unified register of bank guarantees and consider proposals made by state
administration bodies for creating such register in the Republic of Belarus.
Information about the status and development of the market for
documentary operations as well as about transactions involving foreign
currency payment documents and bank checks was collected, analyzed, and
provided to the interested parties in the period under review.
2.3.4. Formation of credit histories and provision of credit reports
In 2014, the National Bank continued to form credit histories of natural
and legal persons and provide the users of credit histories and subjects of credit
histories with credit reports.
As of January 1, 2015, there were 4.48 million credit histories formed in
the Credit registry, including 4.44 million credit histories of natural persons and
0.04 million credit histories of legal persons. In the period under review, the
number of credit histories grew by 3.5%. Credit histories contain information
on 17.87 million credit transactions, of which 5.71 million credit transactions
are current.
Belarusian banks were the sources of formation of credit histories as well
as their main users.
As many as 2.4 million requests for credit histories were submitted by
banks to the Credit registry in 2014 and credit reports were presented to 2.16
million of them. The number of users of credit histories who have online
connection to the Credit registry grew significantly. In the reporting year, 36
new users of credit histories, other than banks (microfinance organizations,
leasing companies, and trading organizations), were connected to the Credit
registry.
The compilations of analytical reports Credit Bulletin for 2013 and Credit
Bulletin for 2014 H1 which contain information on the dynamics of lending and
overdue debt in terms of region and type of activity were prepared, based on
information included in credit histories, and posted on the official website of
the National Bank.
As part of endeavors to improve services to provide users of credit
histories with information contained therein, the Board of the National Bank of
the Republic of Belarus passed Resolution No. 142 “On Some Issues of
Presenting Credit Reports” dated March 13, 2014 (National Legal Internet
Portal of the Republic of Belarus, April 19, 2014, 8/28578) which refines
current forms and establishes new forms of credit reports that enable users of
39
credit histories to monitor the behavior of groups of borrowers in accordance
with specified criteria.
2.4. Improving regulation of non-bank operations
2.4.1. Regulation of leasing activities
In 2014, endeavors were made to improve legislation on leasing activities
(Attachment 2.5) for the purpose of creating favorable conditions for further
development of the leasing market. In particular, Edict of the President of the
Republic of Belarus No. 99 “On Regulation of Leasing Activities” dated
February 25, 2014 (National Legal Internet Portal of the Republic of Belarus,
February 27, 2014, 1/14857) was passed, pursuant to which the powers to
regulate leasing activities and control compliance with legislation on leasing
activities were vested in the National Bank. Within the powers granted by Edict
of the President of the Republic of Belarus No. 99 dated February 25, 2014, the
National Bank adopted a number of regulatory legal acts which establish
required regulatory framework for leasing activities, define procedures for
creating and maintaining the register of leasing organizations, and establish
requirements for disclosure of information by leasing organizations that are on
the register as well as forms, deadlines, and procedures for presenting their
reports and information to the National Bank.
Laws of the Republic of Belarus “On Amending and Modifying the Civil
Code of the Republic of Belarus” dated December 31, 2014 (National Legal
Internet Portal of the Republic of Belarus, January 9, 2015, 2/2224) and “On
Amending and Modifying the Tax Code of the Republic of Belarus” dated
December 30, 2014 (National Legal Internet Portal of the Republic of Belarus,
January 3, 2015, 2/2222) – which were prepared with the National Bank’s
involvement and govern legal relations arising from leasing – were enacted.
The enactment of the above-mentioned regulatory legal acts will be
conducive to improving economic efficiency of leasing tools, reducing risks
associated with leasing activities, ensuring transparency of leasing
organizations and, as a result, promoting leasing.
In the year under review, the work was going on to enter leasing
organizations on the register of leasing organizations. As of January 1, 2015,
this register contained 50 leasing organizations.
2.4.2. Regulation of microfinance organizations’ activities
In 2014, legislative acts and resolutions of the Council of Ministers of the
Republic of Belarus were brought into line with Edict of the President of the
40
Republic of Belarus No. 325 “On Attracting and Extending Loans and
Activities of Microfinance Organizations” dated June 30, 2014 (National Legal
Internet Portal of the Republic of Belarus, July 3, 2014, 1/15134) as well as the
National Bank’s regulatory legal acts on microfinance organizations’ activities
were enacted (Attachment 2.6).
In line with Edict of the President of the Republic of Belarus No. 325
dated June 30, 2014 (subparagraph 1.1, paragraph 1), beginning on August 1,
2014, independent entrepreneurs and legal persons are prohibited from
attracting on a regular basis (not more than two times per calendar month)
monetary funds from the natural persons who are not independent
entrepreneurs, excluding natural persons who are property owners and founders
(shareholders) and members of relevant legal entities.
The enactment of the above-mentioned regulatory legal acts contributes to
the creation of transparent mechanisms of access for small and medium-sized
entrepreneurs as well as natural persons who are property owners and founders
(shareholders) and members of profit-making organizations, artisans, subjects
of farm tourism, or are engaged in private subsidiary farming, to finance
through the use of microfinance instruments; the reduction in operational risks
of non-profit-making microfinance organizations; as well as the creation of
legal framework governing relations arising out of funds borrowing both from
the citizens and by the citizens.
Beginning on January 1, 2015, the National Bank is authorized to enter
microfinance organizations on the register of microfinance organizations and
collect reports of microfinance organizations that are on this register.
2.5. Foreign exchange regulation and foreign exchange control
The main task of foreign exchange regulation and foreign exchange
control in the reporting year was to take measures aimed at ensuring stable
functioning of the domestic foreign currency market.
Taking into account the IMF mission’s recommendations to stop the
practice of multiple exchange rates, the official exchange rate of the Belarusian
ruble is not used by the subjects of foreign exchange operations at a time of
making the mandatory sale of foreign currency in the amount of less than the lot
set on the stock exchange as well as at a time of making the reverse sale of
foreign currency which has not been used. The above-mentioned operations are
carried out at the exchange rate of the Belarusian ruble against foreign currency
which is set by the bank.
With a view to improving the performance of the foreign currency market
segment involving resident subjects of foreign exchange operations, limits on
their foreign currency purchase and sale transactions in the OTC market were
raised from 1,000 units of currency to 20,000 units of currency.
41
In December 2014, the National Bank put a temporary ban on foreign
currency purchase and sale transactions in the OTC market with a view to
consolidating the demand for and the supply of foreign currency on the single
site as well as imposing tighter control over foreign currency flows in order to
prevent speculative transactions at a time of an increase in devaluation
expectations. Such transactions were carried out on the trading floor of JSC
“Belarusian Currency and Stock Exchange”. Given the stabilization of the
situation in the financial sphere and the restoration of stable operation of the
foreign currency market, the ban was partially lifted and the limit of up to
20,000 units of currency was placed on transactions in the OTC market
beginning on February 20, 2014. Foreign currency trading among Belarusian
banks, and a Belarusian bank and a non-resident bank is carried out in the OTC
market without restriction.
With a view to increasing the size of guaranteed supply of foreign
currency in the domestic foreign currency market, the size of mandatory sale
was increased from 30% to 50% of the foreign currency revenue beginning on
December 20, 2014. The size of mandatory sale was reduced to 40% on
February 24, 2015.
Edict of the President of the Republic of Belarus No. 607 “About Tax on
Stock Exchange Transactions to Purchase Foreign Currency” dated December
20, 2014 (National Legal Internet Portal of the Republic of Belarus, December
21, 2014, 1/15488) introduced a temporary 30% tax payable by banks at a time
of foreign currency purchase on the trading floor of JSC “Belarusian Currency
and Stock Exchange”. Organizations and independent entrepreneurs, in the
name of which foreign currency was purchased on the trading floor,
compensated banks for the amount of tax. This tax was cancelled beginning on
January 8, 2015.
In order to reduce the demand for foreign currency from households,
banks were recommended to impose, beginning on December 19, 2014, a
commission fee of 30% of the amount of monetary funds in Belarusian rubles
payable to the bank by natural persons at a time of foreign currency purchase.
As the demand for and the supply of foreign currency were balanced, the
commission fee went gradually down and was cancelled on January 9, 2015.
Procedures for performing functions of foreign exchange control agents
by banks and conducting foreign exchange operations by banks’ clients were
streamlined with a view to imposing more stringent foreign exchange control.
The National Bank adopted regulatory legal acts for the purpose of
implementing measures aimed at improving foreign exchange regulation and
foreign exchange control (Attachment 2.7).
In 2014, the National Bank was continuously monitoring external
receivables of economic entities. Special emphasis was placed on reducing debt
prolonged by the National Bank. In the period under review, the prolonged debt
42
fell by 24% (from USD1.28 billion to USD0.97 billion) and external
receivables – by 21.3% (from USD5.45 billion to USD4.29 billion). As of
January 1, 2015, the share of prolonged debt stood at 22.6% of the total volume
of external receivables.
Facts of violation of the deadlines for completion of foreign trade
transactions worth a total of USD53 million were established in respect of 227
economic entities.
In the process of creating and implementing the single portal of foreign
trade activities in the Republic of Belarus, the National Bank proposed a
mechanism for registration of foreign trade transactions which was taken into
account in the base project of the concept of this portal.
As part of endeavors to improve the national system for preventing
money laundering and terrorism financing and financing the proliferation of
mass destruction weapons, the work was continued to introduce international
standards into Belarusian legislation which were outlined in Law of the
Republic of Belarus “On Amending and Modifying Law of the Republic of
Belarus “On Measures to Prevent Money Laundering and Terrorism
Financing”” dated April 24, 2014 (National Legal Internet Portal of the
Republic of Belarus, April 29, 2014, 2/2131). This legislative act gave banks
the right to suspend a financial operation or refuse the participants in a financial
operation the execution thereof (except for crediting received monetary funds to
the account), if the financial operation matches criteria for identifying
suspicious financial operations and their indications and also made it possible to
organize a full-fledged internal control system in banks which exert effective
influence on unreliable clients. Law of the Republic of Belarus “On Amending
and Modifying Law of the Republic of Belarus “About Measures to Prevent
Money Laundering and Terrorism Financing”” was repealed in connection with
the enactment of Law of the Republic of Belarus “On Measures to Prevent
Money Laundering and Terrorism Financing and Financing the Proliferation of
Mass Destruction Weapons” dated June 30, 2014 (National Legal Internet
Portal of the Republic of Belarus, July 3, 2014, 2/2163).
In the reporting year, an active work was underway to sign the Agreement
between the Government of the Republic of Belarus and the Government of the
United States of America on enforcing compliance with international taxation
laws and implementing Foreign Account Tax Compliance Act (FATCA). The
intergovernmental Agreement on enforcing compliance with international
taxation laws and implementing FATCA was drafted with the involvement of
the National Bank and was signed on March 18, 2015. All banks were
registered at the site of the US Internal Revenue Service and received Global
Intermediary Identification Number (GIIN), thus confirming their consent for
compliance with FATCA requirements. The Republic of Belarus was granted
the status of the collaborating state which enables it to freely make cross-border
43
payments and avoid a withholding of a 30% tax on U-turn transactions that are
effected through foreign correspondent accounts held by Belarusian banks.
In June 2014, the National Bank reported, at the twentieth plenary
meeting held by the Eurasian Financial Action Task Force, the implementation
of recommendations made on the basis of the peer review of the effectiveness
of the national system for preventing money laundering and terrorism financing
and technical compliance with international standards set by Financial Action
Task Force (FATF).
In the reporting period, an active work was underway to establish the
contractual legal framework of the Single Economic Space and the Eurasian
Economic Union taking into account member states’ harmonized approaches to
the regulation of currency legal relations.
2.6. Improving accounting and reporting
In 2014, the work on bringing the national accounting and reporting
system and financial statements into line with international principles, rules,
and standards continued.
In order to coordinate the above-mentioned activities, the National Bank
cooperated with the members of Coordination council for bringing the
accounting and reporting system in the banking system of the Republic of
Belarus into line with the International Accounting Standards (IAS) on the
issues of drafting regulatory legal acts of the National Bank in the field of
accounting and reporting.
In the year under review, the National Accounting Standard 5-F “Noncurrent Assets Held for Sale and Discontinued Operations” (hereinafter – “NAS
5-F”) approved by Resolution of the Board of the National Bank of the
Republic of Belarus No. 703 dated November 18, 2014 was developed based on
the IAS. This standard provides for the principles of recognition and
derecognition in banks’ accounting of long-term assets in the form of fixed
assets, intangible assets, and investments in these assets in the function of being
held for sale, as well as establishes the procedures for determining the amounts
of impairment (reversal of impairment) resulting as of the date of recognition of
the above-mentioned assets and subsequent assessment thereof with a view to
implementing the norms provided for thereby at the accounting level.
In 2014, regulatory legal framework for accounting and financial
reporting was improved with a view to streamlining it having regard to the
practice of its application and changes in legislation, including by means of
eliminating unnecessary detailing of norms and unifying the methods of
accounting the transactions which are similar in economic nature within a
44
single document, as well as implementing provisions of the national accounting
standards (Attachment 2.8).
2.7. Cash circulation
In 2014, the National Bank satisfied the Belarusian economy’s needs
for cash with sufficient quantity of banknotes of various denominations, as
well as continued the improvement of regulatory legal framework in the field of
organizing cash money circulation and conducting cash operations.
Cash circulation in the reporting year was up by 16%, or BYR118.7 trillion,
compared with 2013, amounting to BYR861.8 trillion. The issue of cash in
circulation totaled BYR1,621.8 trillion. The share of issue in cash disbursements
increased by 0.1% compared with the 2013 level and stood at 0.4%.
In 2014, the share of monetary aggregate M0 in the ruble money supply
accounted for 14.2-15.6%. As at January 1, 2015, this indicator totaled 15.3%
(as at January 1, 2014, 15.5%)
As at January 1, 2015, the National Bank put into circulation banknotes
worth BYR20.4 trillion, of which 200,000-ruble notes accounted for the largest
share (63.5%). 100,000-ruble notes, 50,000-ruble notes, 20,000-ruble notes,
10,000-ruble notes, and 5,000-ruble notes accounted for 24.7%, 7.5%, 2.0%,
1.1% and 0.7% of the total amount of the National Bank’s notes in circulation
respectively. The share of banknotes of other denominations totaled 0.5%.
In the year under review, gold, silver, and copper-nickel commemorative
coins of 31 names were put into circulation by the National Bank.
Approximately 89,000 commemorative coins, including 1,000 gold ones,
49,000 silver ones, and 39,000 copper-nickel ones, were sold in the domestic
market.
With a view to preventing money counterfeiting the National Bank took
preventive measures to inform households and banks about authenticity features
of the National Bank’s and foreign notes, provided training, and made
available, in a timely manner, information on newly revealed ways of forging
banknotes for the cashiers of the National Bank and banks. As a result of the
work done, 1,062 counterfeit banknotes were identified and withdrawn from
cash circulation (909 counterfeit banknotes in 2013), including 516 US dollar
notes, 104 euro notes, 418 Russian ruble notes, 18 Belarusian ruble notes, and 6
notes denominated in other currencies.
In the year under review, activities aimed at improving the regulatory legal
framework in the field of cash circulation continued.
With a view to limiting the use of cash in settlements between economic
entities and increasing the share of non-cash settlements involving the use of
modern electronic payment instruments and means of payment for goods and
services, Resolution of the Board of the National Bank of the Republic of Belarus
45
“On Amending the Instructions on Procedures for Conducting Cash Operations
and Carrying out Cash Settlements in Belarusian Rubles in the Republic of
Belarus” No.199 dated March 31, 2014 (National Legal Internet Portal of the
Republic of Belarus, August 14, 2014, 8/28983) was approved, according to
which the amount of cash settlements between business entities was reduced from
300 to 100 basic units per day.
For the purpose of improving the organization of work with cash, the
following regulatory legal acts were approved:
- Resolution of the Board of the National Bank of the Republic of Belarus
“On Amending and Modifying the Instructions on the Procedures for
Determining the Fitness for Use as a Legal Tender and Exchange of Banknotes
of the National Bank of the Republic of Belarus” No. 486 dated July 30, 2014
(National Legal Internet Portal of the Republic of Belarus, August 29, 2014,
8/29041);
- Resolution of the Board of the National Bank of the Republic of Belarus
“On Withdrawing the 50-ruble Notes of the National Bank of the Republic of
Belarus of 2000 Year of Issue from Circulation” No. 560 dated September 5,
2014 (National Legal Internet Portal of the Republic of Belarus, September 29,
2014, 8/29128); and
- Resolution of the Board of the National Bank of the Republic of Belarus
“On Amending and Modifying the Instructions on Organizing Cash
Management Activities in Banks and Non-bank Financial Institutions of the
Republic of Belarus” No. 760 of December 9, 2014 (National Legal Internet
Portal of the Republic of Belarus, December 31, 2014, 8/29437).
2.8. Payment system
In 2014, the National Bank ensured efficient, sound, and secure
functioning of the payment system of the Republic of Belarus.
The automated system of interbank settlements of the National Bank
(hereinafter – the “ASIS”*) is the most important component of the payment
system of the Republic of Belarus.
In the year under review, 71.8 million payment instructions worth
BYR3,601.5 trillion were effected in the BISS (Attachments 2.9 and 2.10).
Compared with 2013, payment instructions effected in the BISS were up by
2.1% in terms of their number and decreased by 6.3% in terms of their amount

The key functional component of the ASIS of the National Bank of the Republic of Belarus is the BISS
(Belarus Interbank Settlement System). The BISS is a gross interbank settlement system in which settlements of urgent
and non-urgent money transfers as well as settlements based on the results of clearing within the related systems (under
purchase and sale transactions involving securities and financial instruments of future transactions and under operations
involving bank payment cards) are effected on a real-time basis. The participants in the BISS are the National Bank,
banks, and non-bank financial institutions.
46
due to the reduction in the volumes of banks’ operations involving attraction
(return) of funds in the deposits with the National Bank. The average daily
turnover amounted to BYR14.2 trillion in terms of payments value and 283.8
thousand in terms of their number. The share of payment instructions received
by the BISS from 8 a.m. to 2 p.m. accounted for 67% of the total number of
payment instructions sent per day (in 2013, 67%).
Unauthorized access to the ASIS was prevented from happening. In 2014,
the parameter of banks’ accessibility to the ASIS was 99.97% of the production
time, with the specified level being not lower than 99.5%.
In the course of streamlining regulatory legal framework of the payment
system a number of regulatory legal acts of the National Bank was adopted.
These acts clarify certain aspects of conducting interbank settlements within the
BISS, define a new mechanism for carrying out interbank settlements based on
the results of clearing under payments accepted by the automated information
system “Settlement” (hereinafter – the AIS “Settlement”), specify in detail the
procedures for prompt modification of the BISS’s rules and procedures at the
initiative of a bank (organizational unit of the National Bank), procedures for
accounting and retiring the settlement documents by a bank, under which
interbank settlements cannot be performed due to the bank’s fault, as well as the
procedures for carrying out interbank payments in a backup mode.
With a view to improving the technology of developing and applying new
types of electronic documents and electronic messages a preliminary work on
implementing national standards based on the methodology of ISO 20022
“Financial Services. Universal Financial Industry Message Scheme”
(hereinafter – the “ISO 20022”) in the payment system of the Republic of
Belarus was started. The use of ISO 20022 in the national payment system
makes it possible to improve the level of Straight Through Processing (STP),
eliminate the problems of compatibility of the automated systems of various
financial institutions, as well as expand the areas of electronic documents’
application. Action Plan for Implementing the Methodology of ISO 20022 in
the Payment System of the Republic of Belarus for 2014 - 2017, approved by
the Chairman of the Board of the National Bank on May 28, 2014, provides for
the development of the relevant regulatory legal framework and software and
hardware infrastructure and specifies the stages of transition to the use of
electronic payment documents and electronic messages created in accordance
with the methodology of ISO 20022.
The pricing policy in the field of the settlement services provided by the
National Bank was aimed at covering the costs associated with the ASIS
operation at the expense of incomes, obtaining income in the amount ensuring a
sufficient level of funds investment in its development, as well as reorienting
the processing of electronic payment documents to the first half of the BISS
business day. The National Bank’s income from settlement services provided in
47
2014 amounted to BYR89.02 billion, growing by 17% against 2013 (BYR76.07
billion in 2013).
Information on sustainable functioning of the payment system and risks
inherent therein was submitted to the Commission on Assessing Financial
Stability of the Banking System on a quarterly basis within the monitoring of
financial stability.
In 2014, risk-based supervision of the BISS was carried out, performance
of the software and hardware complexes and failures in the operation of the
automated systems of its participants were monitored, results of monitoring
were analyzed on a regular basis, recommendations were produced, and their
implementation was followed up.
In the course of inspections of banks the implementation of the
requirements of Technical Code of Common Practice ТКП 477-2013 (07040)
“Banking Activities. Information Technologies. Processes to Ensure
Continuous Performance and Emergency Recovery of Payment System
Participant. General Requirements” approved by Resolution of the Board of the
National Bank of the Republic of Belarus No. 117 dated February 21, 2013,
was monitored with regard to organizational and methodological, as well as
program and technical support of payment system participant’s smooth
performance.
As part of measures designed to mitigate operational risk in the ASIS the
Contingency Plan for Business Continuity and Recovery Procedures for the
ASIS, approved by Deputy Chairman of the Board of the National Bank on
September 25, 2014, was updated. In line with this plan the actions which
should be taken under the conditions of inoperability of the banks’ hardware
and software complex “Gateway” and/or the failure of data storage systems
were trained. The mechanism of guaranteeing the completion of the interbank
settlements by the National Bank based on clearing results in the payment
system BelCard in case of insolvency of one or more banks participating in this
payment system, provided for in the Instructions on the Procedures for
Functioning of the Automated System of Interbank Settlements of the National
Bank and Performing Interbank Settlements in the BISS and approved by
Resolution of the Board of the National Bank of the Republic of Belarus No. 88
dated June 26, 2009 (the National Register of Legal Acts of the Republic of
Belarus, 2009, No. 183, 8/21230), was examined.
Compliance with Principles for Financial Market Infrastructures in the
BISS, published in April, 2012 by the Committee on Payment and Settlement
Systems of the Bank for International Settlements and the Technical Committee
of the International Organization of Securities Commissions, as the
international standards which should be met by the payment systems, was
assessed.
48
The assessment revealed that out of 18 principles applicable to the
payment system in the BISS 13 are observed, 2 principles are fulfilled for the
most part, 1 principle is partially observed, and 2 principles are not applied. All
obligations of the National Bank as the central bank of the country with regard
to the BISS are performed.
The assurance of compatibility with international messaging procedures
and standards (rating of Principle 22 “Messaging Procedures and Standards” –
“is partially complied with”) is now becoming ever more urgent. The BISS’s
compliance with this principle will be achieved by means of implementing the
methodology of ISO 20022 in the payment system of the Republic of Belarus.
With a view to achieving the assessment “is complied with” under
Principle 3 “System of Integrated Risk Management” and Principle 17
“Operational Risk” (their rating – “generally complied with”), the National
Bank will go along with establishing a remote backup data center of interbank
settlements.
2.9 Development of the single settlement and information space
The single settlement and information space (hereinafter – the “SSIS”)
intended for the payment of services through banks, non-bank financial
institutions, and mail and electrical communication organizations is primarily
designed to provide a convenient payment instrument which functions
according to the “one contact” principle to citizens. With the advent of the SSIS
the households have been able to pay for services through payment acceptance
offices of almost all banks staying in any region of the Republic of Belarus and
when using remote banking systems – from outside the country.
27 settlement agents (banks) participate in the “AIS “Settlement”. As of
January 1, 2015, 9,609 service providers were connected to the AIS
“Settlement” (7,488 service providers, as of January 1, 2014). Payments under
50,945 services were made in the SSIS.
The “AIS “Settlement” accepted 255 million payments worth BYR26.4
trillion, a growth by 10.8% and a 48%, respectively, versus 2013 (230 million
payments worth BYR17.8 trillion).
Payments for housing and utilities services (30.1%), communication
services (28.1%), payments to the budget and performance of administrative
procedures (19.8%), educational institutions’ services (7.6%), and banks’
services (7.4%) accounted for the bulk of payments accepted by the SISS.
The share of cashless payments carried out through the SSIS totals 38.2%
(31%, as at January 1, 2014). Payments are distributed over the service
channels as follows: banks’ cash offices – 58.7% (69.8% in 2013), internet
banking – 19.5% (14.4% in 2013), self-service machines (ATMs, infokiosks),
including with the cash-in function – 20.2% (14.4% in 2013).
49
For the purpose of implementing Edict of the President of the Republic of
Belarus “On Amending and Modifying Edict of the President of the Republic of
Belarus No. 389 dated August 30, 2011” No.13 dated January 10, 2014
(National Legal Internet Portal of the Republic of Belarus, January 14, 2014,
1/14734), as well as further developing the SISS, ensuring efficient and smooth
performance of the “AIS “Settlement”, Instructions on Procedures for Functioning
of the Single Settlement and Information Space of the Republic of Belarus,
approved by Resolution of the Board of the National Bank of the Republic of
Belarus No. 393 dated June 10, 2014 (the National Legal Internet Portal of the
Republic of Belarus, July 18, 2014, 8/28874) were adopted.
In October 2014, clearing part of the AIS “Settlement”, which is a single
mechanism for the interbank settlements under payments performed on the
clearing basis, started to function. Thus, both exchange of information and cash
flows under retail payments are optimized within the SSIS.
In the year under review, a set of measures aimed at establishing the
institute of payment agents in the SISS was taken. In line with Resolution of the
Council of Ministers of the Republic of Belarus and the National Bank of the
Republic of Belarus No. 306/3 “On Certain Issues of Developing the Single
Settlement and Information Space” (National Legal Internet Portal of the
Republic of Belarus, April 8, 2014, 5/38660), RUE “Belpost” is the first
payment agent of the SISS. A number of activities aimed at organizing the
functioning of RUE “Belpost” in the SISS was carried out. A pilot area is
planned to be launched in 2015 Q1.
With a view to improving the efficiency of mass payments acceptance by
banks, a continuous work on ensuring the provision of qualitative services to
households and creating conditions for the use of remote banking service
channels by clients was conducted, which will make it possible to redirect the
flows of retail payments from banks’ cash offices to the modern high-tech
service channels.
2.10. IT development
In 2014, the development of information technologies was aimed at
enhancing the efficiency of the National Bank and banks’ performance, as well
as extending cooperation with government agencies.
A set of measures on organizing provision of information from the state
information resources to banks and integrating information resources of the
banking system into a nationwide automated system was carried out. The
National Bank and banks gained the possibility to obtain, within the limits of
legislation, the information from the state information resources through
electronic services of the nationwide automated information system.
50
The work on ensuring interoperability of the departmental electronic
document management system with the interagency electronic document
management system using the data exchange format established by RUE
“National Center of Electronic Services” was conducted.
Improvement and enhancement of the electronic document management
system in the process of interaction of the government agencies with the
banking system in case of submission to banks of documents for the
indisputable recovery of funds from the organizations’ and individual
entrepreneurs’ accounts, as well as suspension of operations on the accounts of
organizations and individual entrepreneurs being in arrears with obligatory
payments by tax authorities, bodies of the Population Social Protection Fund
(PSPF) under the Ministry of Labour and Social Protection, local agencies of
the Ministry of Finance and local financial agencies continued.
In the reporting period, the National Bank and the banks ensured a
sustainable and secure functioning of their information systems.
2.11. Improving financial literacy of population
In 2014, the active work aimed at improving financial literacy of
population continued.
The above-mentioned activities were implemented in accordance with the
Joint Action Plan of Government Agencies and Financial Market Participants
on Improving Financial Literacy of the Population of the Republic of Belarus
for 2013-2018 approved by Resolution of the Council of Ministers of the
Republic of Belarus and the National Bank of the Republic of Belarus No. 31/1
dated January 17, 2013 (National Legal Internet Portal of the Republic of
Belarus, January 30, 2013, 5/36811). The Interagency Coordinating Council for
Improvement of Financial Literacy of Population coordinated the financial
market participants’ activities.
In March 2014, as part of cooperation with the Children Youth Finance
International (CYFI), the National Bank organized a week of financial literacy
of pupils, which included educational activities and events designed to
introduce teenagers with the rules of good financial behavior.
In April 2014, the National Bank became a partner of the festival contest
“Stairs of Success”, the aim of which was to enhance economic education and
financial literacy of young people, as well as develop youth entrepreneurship.
In the year under review, employees of the National Bank delivered
lectures on financial literacy for students of the educational establishment
“Belarusian State Economic University”, students of the Academy of Public
Administration under the Aegis of the President of the Republic of Belarus, the
pupils of “SOS-Children’s Village” in Marjina Gorka, employees of the
51
Operational and Analytical Centre under the President of the Republic of
Belarus, and the National Center of Legal Information.
In March 2014, a meeting of the AFI Consumer Empowerment and
Market Conduct Working Group was held in Minsk within an active interaction
with international organization “Alliance for Financial Inclusion” (AFI). In
December 2014, the AFI provided the National Bank with a grant to implement
the project “Developing Regional Cooperation in Promoting Access to Finance
in Eastern Europe and CIS”.
In 2014, the National Bank signed memorandums of cooperation in the
field of financial literacy with OJSC “RAZLIK” and the Republican
Microfinance Center, agreements on cooperation with the National Center of
Legal Information, the state agency “Agency for the Guaranteed Repayment of
Natural Persons’ Deposits”, the Association of Lessors, and the unitary
enterprise “School of Exchange Trade”.
For the purpose of improving the efficiency of joint projects, in
November 2014 the National Bank and the Ministry of Education approved the
action plan for cooperation in the field of improving the financial literacy of
students of educational institutions of the Republic of Belarus. The main
objectives of the document are the development and implementation of the
innovative project to improve the financial literacy as one of the competencies
of students of institutions of secondary education, development and production
of teaching aids, organization of seminars for teachers, and creation of the
electronic financial encyclopedia for students on the Unified Internet Portal of
the Households’ Financial Literacy.
In 2014, the Republican competition on financial literacy was held among
students of educational institutions, as well as a contest for the best work on
economic issues among students and students in the master’s program of the
leading institutions of higher education with specialization in economics.
On September 1, 2014, the Unified Internet Portal of the Households’
Financial Literacy, on which various information on the sphere of financial
literacy is posted, started to function.
The households’ financial literacy was improved in close cooperation
with the mass media. In the reporting year, social video clips on financial topics
were broadcasted on the leading TV channels of the country (“Belarus 1”,
“Belarus 2”, “Belarus 5”, and “NTV-Belarus”), on the demonstration screens of
the Palace of Sports, the underground, the department store “Belarus”, the bus
station “Central” in Minsk, as well as in the route taxis.
The implementation of joint projects on financial literacy with the printed
media (newspapers “Vecherny Minsk”, “Minskaya Pravda”, “Narodnaya
Gazeta”, “Nastaunitskaya Gazeta”, “Perekhodnyj Vozrast”, and magazine
“Narodnaya Asveta”) continued.
52
In October 2014, the National Bank took an active part in the 9th
specialized exhibition of financial services “Bank. Insurance. Leasing”,
dedicated to the International Day of Savings, which is celebrated in many
countries around the world on October 31. The exhibition program included
activities and actions aimed at providing the households with basic knowledge
in the field of using various financial instruments, as well as disclosing the
importance of savings.
The Contact Center, which provides consulting services to the population
on various aspects of the central bank’s activities, transactions in the cash
foreign exchange market, with precious metals and precious stones, and with
payment instruments, as well as on the issues of interaction between the client
and the bank, is functioning at the National Bank. The analysis of the incoming
calls is carried out on a monthly basis in order to take the necessary response
measures.
2.12. International cooperation
In 2014, the work aimed at unifying principles, mechanisms, and
instruments of the monetary and foreign exchange policy within Single
Economic Space, the Union Sate, and the Commonwealth of Independent States
was underway.
A special emphasis was made on the development of the contractual and
legal framework of the Single Economic Space and implementation of provisions
of the Agreement on the Eurasian Economic Community, which was signed by
the heads of the member states of the Customs Union and the Single Economic
Space on May 29, 2014 in Astana.
For the purpose of establishing and improving the contractual legal
framework in the financial sector, as well as implementing coordinated foreign
exchange policy, three meetings of the Advisory Council for Currency Policy of
Central Banks of Member States of the Single Economic Space were held.
Representatives of the National Bank participated in the work of advisory
committees on the financial markets, macroeconomic policy, and statistics of
member states of the Customs Union and the Single Economic Space.
The National Bank participated in the internal approval of the draft
Agreement on the Exchange of Information, including the confidential one, in
the financial sector in order to create the conditions in the financial markets
ensuring the free movement of capital, which was signed in December 2014.
In the reporting year, two meetings of the Interbank Currency Board of
the National Bank of the Republic of Belarus and the Central Bank of the
Russian Federation, as well as two meetings of the Council of Heads of Central
(National) Banks of the EurAsEC Member States were held, in the course of
which the urgent issues related to the monetary and foreign exchange policy,
53
banking supervision, and payment system development were considered, the
economic situation, dynamics of international reserves and liquidity of central
banks in foreign exchange were analyzed, as well as Agreement on Cooperation
between the National Bank of the Republic of Belarus and the Central Bank of
the Russian Federation on the Issues of Joint Banking Supervision (Oversight)
of Payment Systems (December 2014) (National Legal Internet Portal of the
Republic of Belarus, January 1, 2015, 3/3071) and Regulation on Advisory
Council on Audit Activities of Central (National) Banks of the EurAsEC
Member States (June 2014) were signed.
Considerable attention was paid to the development of mutually
beneficial cooperation with the central (national) banks of the CIS member
states.
At the meetings of the CIS Economic Council the current financial and
economic situation in the CIS member states and prospects for its development
were discussed. The results of the first thematic review of the Group on
Regulating the National Сore Banks, conducted in 2014 H2, as well as
improvement of supervisory measures and other issues were considered at the
meeting of the Regional Advisory Group of the Financial Stability Board in the
CIS.
The National Bank participated in the drafting of the Action Plan for the
Implementation of the Third Phase (2016 - 2020 years) of the CIS Economic
Development Strategy for the period till 2020.
Meetings of the Board of the Interstate Bank, in the course of which the
parties discussed the results of the bank’s activities in the reporting period, the
financial position of the Interstate Bank and measures for its stabilization, as
well as other issues were held.
In 2014, a number of activities were carried out in line with the
established priorities of development of the National Bank’s relations with
international financial institutions.
In the course of annual consultations under Article IV of the IMF’s Articles
of Agreement conducted on April 17 - 28, 2014, the measures taken in the
economic, fiscal, and monetary spheres were discussed with the IMF’s experts and
the level of macroeconomic and financial stability and prospects for mutually
beneficial cooperation were assessed. These issues were also addressed at the
annual meetings of the Boards of Governors of the IMF and the World Bank Group,
held on October 8 - 12, 2014 in Washington DC (USA), as well as in the course of
the visit of the IMF mission to Belarus on October 22 - 28, 2014.
In March 2014, the updated information to be included in the 65th issue
of the publication “Annual Report on Exchange Arrangements and Exchange
Restrictions”, published in accordance with Section 3 of Article XIV of the
IMF’s Articles of Agreement, was submitted to the IMF in concert with the
involved government agencies.
54
In the course of further technical assistance provided to the National Bank
in the field of development of the monetary policy strategy in the context of
switching to a more flexible exchange rate regime, as well as carrying out
monetary operations and foreign exchange interventions the multi-purpose IMF
mission was held on March 27 - April 4, 2014, the conclusions and
recommendations of which were considered and taken into account in the
National Bank’s activities.
In accordance with the agreement reached, the World Bank’s and the
IMF’s experts implemented on February 10 - 19, 2014 a modular program of
assessing the financial sector of the Republic of Belarus, which included the
analysis of the instruments of provision of state support to the economy and the
role of the JSC “Development Bank of the Republic of Belarus”, the study of
the potential for the development of leasing and factoring, and discussion of the
issues of supervision and regulation of the microfinance institutions’ activities.
In the year under review, the visits of the technical assistance missions of
the World Bank aimed at providing assistance in the field of development of the
national system of the households’ financial literacy enhancement, reserves
management, development of the private and financial sectors, and accession of
the Republic of Belarus to the WTO were held.
Issues of social and economic development of the Republic of Belarus
and cooperation with the European Bank for Reconstruction and Development
(hereinafter – the “EBRD”) were considered during the meeting of the National
Bank’s management with Mr. A. Shimor, Vice-president of the EBRD, which
was held on April 1, 2014. This topic was also discussed during the work of the
National Bank’s representatives on the Belarusian Delegation to the Annual
Meetings of the Board of Governors of the European Bank for Reconstruction
and Development and the Business Forum (May 14 - 15, 2014, Warsaw,
Poland), as well as in the course of the advisory visit of the delegation of the
EBRD’s Board of Directors to the Republic of Belarus on September 26, 2014.
As part of development of the contractual and legal framework of
bilateral international cooperation the Memorandum of Understanding between
the National Bank of the Republic of Belarus and the Bank of the Lao People’s
Democratic Republic (February 6, 2014) (National Legal Internet Portal of the
Republic of Belarus, February 22, 2014, 3/2994) and Memorandum of
Understanding between the National Bank of the Republic of Belarus and the
National Bank of Cambodia (April 23, 2014) were signed.
2.13. Staffing and staff training
In 2014, certain measures aimed at streamlining the organizational
structure, functions, and number of employees of the National Bank were
55
implemented, which resulted in the decrease in the number of the National
Bank’s staff (excluding the personnel in charge of buildings security and
maintenance) by 7 employees and civil servants by 27 employees.
The average age of civil servants remained unchanged compared with
2013 and stood at 42 years.
The share of the employees who have more than 10 years of work record
in the banking sphere accounted for 60% of the total number of the National
Bank’s personnel.
In the year under review, civil servants that are graduates of the
institutions of higher education accounted for 99.7%, of which 35% obtained a
diploma of additional higher education or received retraining in other fields. 20
employees of the National Bank have a degree (2 – D.Sc. and 18 – M.Sc.).
The work aimed at improving the quality of education, studying the
domestic and foreign experience in banking, and developing relations with the
EurAsEC member states and countries of Western Europe in the field of
training was underway. 166 employees of the National Bank attended
international seminars and courses.
In the year under review, 845 officers of the National Bank and 586
employees of the banks underwent short-term training in the main banking
activities in the Training Center of the National Bank. A high emphasis was
placed on the development of managerial skills of heads of organizational units,
professional capacity of staff, as well as corporate relations and values.
2.14. Internal audit
In 2014, internal audit activities of the National Bank were aimed at
improving the internal control and risk management system. International
professional standards of internal audit, international standards in the field of
information technologies security, international methodology in the sphere of
management, control and audit of information technologies CobiT, and
international best practices were used in the process of organization and
performance of internal audit.
In the year under review, in line with Resolution of the Board of the
National Bank of the Republic of Belarus No. 744 “On Approving the Plan of
Carrying Out Audits and Inspections by the Internal Audit Directorate for 2014
- 2016” dated December 16, 2013, as well as under instructions of the Board
and Chairman of the Board of the National Bank, audits of the National Bank’s
operations and applied information technologies, inspections of cash and other
valuables in the National Bank’s vaults and cash offices, including their
safekeeping, were carried out. The selection of objects for auditing was carried
out based on the results of the quantitative risk assessment of the audited
objects with regard to the strategic objectives of the National Bank’s activities.
56
The audit was carried out on the basis of a risk-based approach with the
assessment of the adequacy of the internal control system and risks of the
National Bank’s activities. Considerable attention was paid to the organization
of risk management processes (reputational, financial and operational) inherent
to the operations audited in the National Bank. According to the results of the
audit, the internal control and risk management system generally complied with
the nature and scale of performed transactions (conducted functions). In the
course of audit of information technologies, the priority was given to the issues
of ensuring security of the systems, primarily of that ones, which were of a
critical character for the National Bank.
For the purpose of minimizing risks in the National Bank’s activities,
local regulatory legal acts were amended, measures aimed at optimizing the
processes of the National Bank, increasing the efficiency of applied software
systems’ functioning, as well as improving the internal control and risk
management system were taken. The specialists of the Internal Audit
Directorate controlled the entirety of follow-up of the recommendations and
execution of instructions which were made based on the audits findings, as well
as remedying of the revealed violations and deficiencies.
During the year under review, the Internal Audit Directorate coordinated
the activities on collaboration with the external audit firm in the process of
auditing the annual financial statements of the National Bank for 2013 and
carrying out interim audit procedures to audit the annual financial statements
for 2014. In accordance with the agreement reached on the application of
International Standard on Auditing 610 “Using the Work of Internal Auditors”,
the Internal Audit Directorate participated in the auditing of the abovementioned statements within the rules of procedure agreed with the external
auditor.
With a view to fulfilling the requirements and provisions of international
standards of internal audit, the forms and methods of carrying out the internal
audit and the applied audit procedures were streamlined and the work aimed at
improving the quality and efficiency of the internal audit activities was carried
out.
57
Chapter 3
Financial statements
The annual financial statements of the National Bank are compiled in
accordance with legislation of the Republic of Belarus and regulatory legal acts
of the National Bank.
In the year under review, operations stemming from the tasks and
functions stipulated in the Banking Code of the Republic of Belarus, the Statute
of the National Bank of the Republic of Belarus, and the Guidelines for 2014
were performed.
According to the opinion of the audit firm Ernst & Young LLC, the National
Bank’s annual financial statements present fairly, in all material aspects, the
financial position of the National Bank as at January 1, 2015, and its financial
performance in 2014.
3.1. Assets of the National Bank
As at January 1, 2015, the assets of the National Bank amounted to
BYR100,710 billion and included the following items:
- foreign cash – BYR1,674 billion (1.6% of the assets);
precious metals and precious stones – BYR9,024 billion (9.0%), of
which placed on deposit and correspondent accounts with non-resident banks –
BYR7,057 billion;
- securities – BYR22,931 billion (22.8%), of which bonds of the JSC
“Development Bank of the Republic of Belarus” – BYR13,837 billion,
securities of republican agencies of state administration – BYR4,830 billion,
and securities of government agencies of foreign countries – BYR3,267 billion;
funds placed with banks and the JSC “Development Bank of the
Republic of Belarus” – BYR46,447 billion (46.1%), of which funds placed by
the National Bank on deposit and correspondent accounts – BYR40,165 billion,
and credits granted to resident banks – BYR6,278 billion;
credits and other operations with clients involving assets – BYR156
billion (0.1%);
- derivative financial assets – BYR167 billion (0.2%);
- long-term financial investments – BYR1,592 billion (1.6%);
- fixed assets and intangible assets – BYR1,320 billion (1.3%); and
other assets – BYR17,399 billion (17.3%), of which the revaluation
of derivatives – BYR10,479 billion.
58
3.2. Liabilities of the National Bank
As at January 1, 2015, the liabilities of the National Bank amounted to
BYR146,570 billion, of which:
- money in circulation – BYR20,447 billion (14.0% of the liabilities);
precious metals and precious stones – BYR437 billion (0.3%),
including attracted from non-resident banks in the form of time deposits –
BYR196 billion, placed on corresponding accounts by resident banks –
BYR117 billion, and placed in the form of time deposits and on unallocated
bullion accounts by clients – BYR124 billion;
- funds of international financial institutions – BYR15 billion;
funds of banks and the JSC “Development Bank of the Republic of
Belarus” – BYR66,434 billion (45.3%), of which attracted from banks in the
form of time deposits – BYR33,723 billion, placed on correspondent accounts –
BYR16,744 billion, and obtained in the form of credits – BYR14,327 billion;
- clients’ funds – BYR43,416 billion (29.6%);
- banks’ required reserves – BYR1,875 billion (1.3%);
- securities issued by the National Bank – BYR3,278 billion (2.2%);
- derivative financial liabilities – BYR10,646 billion (7.3%); and
- other liabilities – BYR22 billion.
3.3. Capital of the National Bank
According to the results of end-2014, the National Bank’s own capital
had the negative value of BYR45,860 billion.
The authorized capital of the National Bank was set up in full in the
amount of BYR250 billion.
3.4. Income and expenses of the National Bank
In 2014, the National Bank’s income totaled BYR4,687 billion, expenses
amounted to BYR11,853 billion, and loss accounted for BYR7,166 billion.
59
Form 1
of annual financial statements
ANNUAL BALANCE SHEET
as at January 1, 2015
National Bank of the Republic of Belarus
(BYR, mn)
Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
ASSETS
Cash
Precious metals and precious stones
Securities
Amounts due from banks and JSC “Development
Bank of the Republic of Belarus”
Loans and other asset operations with customers
Derivative financial assets
Long-term financial investments
Fixed and intangible assets
Other assets
TOTAL assets
LIABILITIES
Currency in circulation
Precious metals and precious stones
Amounts due to international credit institutions
Amounts due to banks and JSC “Development Bank
of the Republic of Belarus”
Amounts due to customers
Obligatory reserves of local banks
Securities issued by the National Bank
Derivative financial liabilities
Other liabilities
TOTAL liabilities
EQUITY
Statutory capital
Reserve fund and other funds
Retained earnings (deficit)
Balance sheet items revaluation funds
TOTAL equity
TOTAL liabilities and equity
Index
2014
2013
1100
1101
1102
1,674,202
9,023,966
22,930,630
780,322
8,491,742
15,540,517
1103
1104
1105
1106
1107
1108
110
46,446,958
156,158
167,127
1,592,094
1,319,998
17,399,222
100,710,355
56,312,481
169,126
1,147
819,325
1,388,932
20,349,126
103,852,718
1200
1201
1202
20,446,883
436,567
15,255
17,892,883
286,991
13,190
1203
1204
1205
1206
1207
1208
120
66,434,323
43,415,719
1,875,452
3,277,930
10,646,142
22,215
146,570,486
45,441,811
52,741,702
3,969,248
550,400
13,190,441
31,340
134,118,006
1211
1212
1213
1214
121
12
250, 000
363, 915
(8, 116, 881)
(38, 357, 165)
(45, 860, 131)
100,710,355
250,000
163,063
(943,660)
(29,734,691)
(30,265,288)
103,852,718
60
Form 2
of annual financial statements
STATEMENT
of income in 2014
National Bank of the Republic of Belarus
(BYR, mn)
Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Interest income
Interest expenses
Net interest income (expenses)
Fee and commission income
Fee and commission expenses
Net fee and commission income
Net gain (loss) from foreign currency transactions
Net gain (loss) from operations with precious
metals and precious stones
Net gain (loss) from operations with securities
Net gain (loss) from operations with derivative
financial instruments
Dividend income
Net charge to (reversal of) provisions
Other expenses
Other income
Other expenses, net
Allocations to the republican budget
PROFIT (LOSS)
Index
2014
2013
2011
2012
201
2021
2022
202
203
3,857,924
4,244,043
(386,119)
37,966
18,370
19,596
(918,319)
4,189,193
4,407,448
(218,255)
22,128
10,980
11,148
183,603
204
205
155,300
2,831
150,490
(29)
206
207
208
2091
2092
209
210
2
(5,384,889)
65,654
(73)
1,052,199
333,727
718,472
2,092
(7,166,437)
82,014
3,696
77
1,257,614
677,700
579,914
1,631
(368,955)
61
Form 3
of annual financial statements
STATEMENT
of the change in equity in 2014
National Bank of the Republic of Belarus
(BYR, mn)
Description of indicators
1.
2.
2.1.
2.2.
2.5.
3.
Balance as at January 1, 2013
Changes of equity items, including:
comprehensive income
profit allocation to the reserves of the State Institution “Agency
for Guaranteed Compensation of Individual Bank Deposits”
distribution of profit retained by the National Bank
transfer of the amounts of revaluation of disposed property and
equipment and intangible assets to retained earnings
other changes
Balance as at January 1, 2014
3011
3012
Total own
equity
250,000
154,747
8,316
(585,610)
(26,004,308)
(26,176,855)
–
–
–
(358,050)
(3,730,383)
(4,088,433)
30121
x
X
x
(368,955)
(3,719,478)
(4,088,433)
30122
30123
x
–
X
–
x
–
–
–
x
x
–
–
30124
30125
3013
x
–
250,000
X
–
154,747
x
–
8,316
10,905
–
(943,660)
(10,905)
–
(29,734,691)
–
–
(30,265,288)
Section II. For the reporting year
4.
5.
Balance as at January 1, 2014
Changes of equity items, including:
comprehensive income
profit allocation to the reserves of the State Institution “Agency
for Guaranteed Compensation of Individual Bank Deposits”
5.3. distribution of profit retained by the National Bank
5.4. transfer the amounts of revaluation of disposed property and
equipment and intangible assets to retained earnings
5.5. other changes
6. Balance as at January 1, 2015
5.1.
5.2.
3011
3012
250,000
154,747
8,316
(943,660)
(29,734,691)
(30,265,288)
30121
–
x
200,852
X
–
x
(7,173,22)
(7,166,43)
(8,622,474)
(8,428,406)
(15,594,843)
(15,594,843)
30122
30123
x
–
X
10,905
x
–
–
(10,905)
x
x
–
–
30124
30125
3013
x
–
250,000
X
189,947
355,599
x
–
8,316
4,121
–
(8,116,881)
(4,121)
(189,947)
(38, 357,165)
–
–
(45, 860,131)
70
2.3.
2.4.
Capital items indicators
Statutory
Reserve
Other funds
Retained
Balance sheet
Index
capital
fund
earnings
items
(loss)
revaluation
funds
Section I. For the year preceding the reporting year
62
Appendix to the
statement of
the change in equity
INFORMATION
on comprehensive income for 2014
National Bank of the Republic of Belarus
(BYR, mn)
Description
1. Profit (loss)
2. Other components of comprehensive income,
including:
2.1. revaluation of property and equipment and noninstalled equipment
2.2. revaluation of intangible assets
2.3. translation differences from foreign exchange
revaluation
2.4. revaluation of precious metals
2.5. revaluation of securities
2.6. revaluation of hedging instruments
2.7. revaluation of precious stones
2.8. revaluation of other balance sheet items
3. TOTAL comprehensive income
Index
2014
301211
301212
(7,166,437)
(8,428,406)
3012121
3012122
(2,967)
3012123
3012124
3012125
3012126
3012127
3012128
30121
(8,425,679)
2013
(368,955)
(3,719,478)
–
–
240
–
–
–
(15,594,843)
183,509
–
(3,902,796)
(5)
(186)
–
–
–
(4,088,433)
63
Form 4
of annual financial
statements
STATEMENT
of the formation and use of reserves for 2014
National Bank of the Republic of Belarus
(BYR, mn)
Item
Code
Statutory fund
Reserve fund
Revaluation
reserves of
property and
equipment and
non-installed
equipment
Other funds
Revaluation
reserves of
intangible
assets
Translation
differences
from foreign
exchange
revaluation fund
Revaluation
reserves of
precious
metals and
stones
Securities
revaluati
on
reserves
Hedging
instrume
nts
revaluati
on
reserve
Revaluati
on
reserves
of other
balance
sheet
items
Total
Section I. For the year preceding the reporting year
250,000
154,747
8,316
4012
–
–
–
4013
4014
–
–
х
–
–
–
249,583
76,979
5.
Balance as at January 1,2014
4015
250,000
154,747
8,316
1,420,529
3.
6.
7.
8.
9.
10.
1,247,925
х
–
(27,412,091)
159,858
–
–
–
х
х
Х
х
х
х
–
–
–
–
–
3,902,796
5
533
719
–
–
–
–
(31,314,887)
159,853
(186)
–
–
Section II. For the reporting year
–
(31,314,887)
8 ,316 1,420,529
Balance as at January 1,2014
Paid into reserves by
allocating profit
Paid into reserves by using
other sources
4011
250,000
154,747
4012
–
10,905
–
4013
–
189, 947
–
43
Reserves used
Balance as at January 1,2015
4014
4015
–
–
–
250,000
355,599
8,316
197, 078
1,223,494
х
(25,591,245)
–
250,116
3,980,499
(29,321,62)
159,853
(186)
–
–
(29,321,628)
х
х
х
Х
Х
х
10,905
–
–
–
–
2,896
–
–
192,886
8,425,679
(39,740,566)
–
159,853
2,656
54
–
–
–
–
8,625,413
(37,743,250)
–
72
4011
4.
Balance as at January 1,2013
Paid into reserves by
allocating profit
Paid into reserves by using
other sources
Reserves used
1.
2.
64
Form 6
of annual financial statements
STATEMENT
of maintenance costs of the National Bank in 2014
National Bank of the Republic of Belarus
(BYR, mn)
Description of expenses
1.
1.1.
1.2.
1.3.
1.4.
1.5.
1.6.
1.7.
Maintenance costs, total
including:
staff costs
expenses on the use of land, buildings,
structures, and other property and
equipment as well as materials
expenses on the consulting, auditor,
informational, marketing, advertising and
other received services
depreciation and amortization charges
costs arising from the disposal of longterm financial investments and property
costs of operation of the payment system
other operating expenses
Index
2014
plan
actual
Actually for
2013
6011
975,145.0
755,746
993,725
60111
410,800.0
401,265
341,247
60112
109,234.0
85,888
72,527
60113
60114
14,370.0
216,060.5
11,281
104,897
10,050
97,528
60115
60116
60117
48,146.6
15,397.0
161,136.9
24,961
3,828
123,626
360,385
2,806
109,182
65
Form 7
of annual financial statements
STATEMENT
of capital investments budget execution for 2014
National Bank of the Republic of Belarus
(BYR, mn)
Capital investment workstream
1. Capital investments, total
including:
1.1. capital construction and reconstruction
1.2. measures to develop the software and
technical infrastructure of the payment system
1.3. computer equipment, software, and network
equipment
1.4. equipment to enhance safety and protection
information
1.5. cash registers and other equipment to work
with values
1.6. equipment to work with precious metals and
precious stones
1.7. vehicles,
including:
those for transporting valuables
office motorcars and other vehicles
1.8. maintenance equipment for vehicles and
buildings
1.9. measures to develop a common settlement
and information area
1.10. other
Index
2014
Actually
for 2013
plan
actual
7011
176,666.0
86,376
150,198
701101
96,973.1
37,354
82,114
701102
15,871.5
15,047
17,305
701103
28,888.4
17,332
14,864
701104
15,095.5
9,541
8,444
701105
1,890.0
1,637
1,178
701106
701107
53.0
563.0
–
212
–
6,759
7011071
7011072
–
563.0
–
212
5,329
1,430
701108
839.0
641
525
701109
701110
5,100.0
11,392.5
2,883
1,729
18,255
754
66
Form 8
of annual financial
statements
STATEMENT
of profit and its allocation for 2014
National Bank of the Republic of Belarus
Description
Index
2
(BYR, mn)
2013
(368,955)
2014
(7,166,437)
1. Profit (loss)
2. Allocation of profit of the reporting year that requires
approval:
221
–
–
2.1. Agency for Guaranteed Compensation of Individual
Bank Deposits
2.2. statutory fund
2.3. reserve fund
2.4. other funds
2210
2211
2212
2213
–
–
–
–
–
–
–
–
67
Conclusion
The most important results of the National Bank’s activities in 2014 were
curbing the intensity of inflationary processes, avoiding a dramatic decrease in
gold and foreign exchange reserves under conditions of repayment of
significant amounts of government liabilities in foreign exchange, increasing
the availability of credit resources in the national currency, as well as
maintaining higher profitability of bank deposits in Belarusian rubles compared
with bank deposits in foreign exchange.
Stability of the banking sector and efficient and secure functioning of the
payment system were ensured.
The National Bank was engaged in building up an efficient financial
market, establishing a favourable investment climate, and improving
households’ financial literacy.
68
Attachment 1.1
to the Report of the National Bank
for 2014
MAIN
macroeconomic parameters of social and
economic development of the Republic of Belarus
in 2014
Indicators
Gross domestic product (GDP)
GDP labour productivity
(in comparable prices, %)
For information:
2014 to
2013 to
2013
2012
101.6
101.0
102.9
101.7
101.9
95.1
Profitability of sales in organizations of
industry, %
7.7
7.4
The share of innovative products shipped by
organizations, the main economic activity of
which is manufacturing of industrial products in
the total volume of products shipped, %
14.2
17.8
Agricultural products
103.1
95.8
Export of goods and services according to the
methodology of the balance of payments
98.9
84.9
Balance of foreign trade in goods and services, %
of GDP
-0.5
-3.2
Reduction in GDP’s energy/output ratio
1.0
-11.1
100.1
116.3
Industrial products
Households’ disposable real money income
Foreign direct investments on a net basis
(excluding the amounts owed to direct investor
for goods [works, services]), USD bn
Placing houses in use at the expense of all
financing sources, million square meters
2.4
2.7
5.5
5.3
69
Attachment 1.2
to the Report of the National Bank
for 2014
DYNAMICS
of financial results of organizations
Indicators
2013
2014
Growth
rate, %
(BYR bn)
For
information:
1, 274, 846.2
1, 419, 891.4
111.4
2013 to
2012, %
110.1
571.0
651.2
114.0
х
168, 968.0
13.3
183, 754.9
12.9
108.8
х
120.9
х
Cost of sold products, goods,
works, and services
1, 022, 226.5
1, 135, 386.3
111.1
112.7
% of proceeds
80.2
80.0
х
х
83, 651.7
53, 275.1
40, 457.9
6.6
100, 750.3
60, 811.4
46, 340.6
7.1
120.4
114.1
114.5
х
76.4
61.8
59.3
х
8.2
8.9
х
х
10.3
13.5
х
х
9, 599.9
17, 177.5
178.9
264.8
18, 091.5
19, 528.0
107.9
116.9
Proceeds from sale of
products, goods, works, and
services
including average listed
employee (BYR mn)
Taxes and fees accrued from
proceeds
% of proceeds
Profit/losses (-) from sold
products, goods, works, and
services
Profit, losses (-) before tax
Net profit, losses (-)
Profitability of sales, %
Profitability of sold products,
goods, works, and services,
%
Share of loss-making
organizations in their total
number, %
Net loss amount of the lossmaking organizations
Donations from the budget
for the compensation of
losses
0
2013
Costs
2014
Balance
150
8
100
6
50
4
2
0
Deficit (-), proficit (+)
January-December
January-November
January-October
January-September
January - August
January-July
January-June
January-May
January– April
January-March
January – February
January
January-December
January-November
January-October
January-September
January - August
January-July
200
70
Income
January-June
January-May
January– April
January-March
January – February
January
Income, costs
Attachment 1.3
to the Report of
the National Bank
for 2014
DYNAMICS
of the income, costs, deficit (-)/surplus(+) of the
Republic of Belarus consolidated budget in 2013 –
2014
(on a cumulative total from the beginning of the year, BYR trn)
14
12
10
71
Attachment 1.4
to the Report
of the National Bank
for 2014
DYNAMICS
of consumer prices, core inflation, and regulated
prices and rates for paid services offered to
households in 2013 – 2014
(in % to the corresponding month of the previous year)
2013
Consumer prices
2014
Core inflation
Regulated prices
December
November
October
September
August
July
June
May
April
March
February
January
December
November
October
September
August
July
June
May
April
March
February
January
145
140
135
130
125
120
115
110
105
100
72
Attachment 1.5
to the Report of the National Bank
for 2014
BASIC ACCOUNTS
in the balance of payments in 2005 – 2014
(USD mn)
Attachment 1.6
to the Report of the National Bank
for 2014
EXTERNAL DEBT
of the Republic of Belarus in 2005 – 2014
(USD bn)
(%)
74
Attachment 1.7
to the Report
of the National Bank
for 2014
INFORMATION
on banks’ liabilities BYR trn
Indicators
Banks’ liabilities
growth rates, %
of nominal GDP, %
1. Funds attracted from residents of the Republic of Belarus growth rates, %
of which:
funds of Government agencies
growth rates, %
economic entities’ funds
growth rates, %
natural persons’ funds
growth rates, %
National Bank’s funds
growth rates, %
banks’ funds
growth rates, %
2. Funds attracted from non‐residents of the Republic of Belarus growth rates, %
3. Other liabilities growth rates, %
including:
banks’ own capital
growth rates, %
Actual as at
01.01.2014 01.01.2015
395.2
123.0
60.9
481.5
121.9
61.9
252.2
117.6
319.5
126.7
39.1
129.9
86.2
102.3
106.3
132.0
12.7
107.6
7.8
101.3
54.6
139.6
96.3
111.7
139.9
131.6
15.4
121.0
13.4
170.5
77.8
148.5
87.2
112.0
65.1
119.7
74.8
114.9
55.9
119.7
65.1
116.4
75
Attachment 1.8
to the Report
of the National Bank
for 2014
STRUCTURE
of banks’ liabilities
(%)
76
Attachment 1.9
to the Report
of the National Bank
for 2014
INFORMATION
on banks’ assets
Indicators
Banks’ assets
growth rates, %
of nominal GDP, %
1. Claims on residents of the Republic of Belarus
growth rates, %
of which:
claims on Government agencies
growth rates, %
claims on economic entities
growth rates, %
claims on natural persons
growth rates, %
claims on the National Bank
growth rates, %
claims on banks
growth rates, %
2. Claims on non‐residents of the Republic of Belarus
growth rates, %
3. Other assets growth rates, %
(BYR trn)
Actual as at
01.01.2014 01.01.2015
395.2
123.0
60.9
370.3
123.4
481.5
121.9
61.9
454.1
122.6
24.9
159.2
228.5
127.3
54.9
133.7
54.42
96.3
7.6
102.1
14.0
104.2
10.9
140.1
33.6
134.6
282.8
123.8
64.1
116.8
62.4
114.6
11.2
148.2
14.1
101.3
13.3
122.3
77
Attachment 1.10
to the Report of the National Bank
for 2014
STRUCTURE
of banks’ assets
01.01.2014
57,8
13,9
13,8
6,3
01.01.2015
58,7
13,3
13,0
7,0 2,9 2,32,8
3,5 1,92,7
Attachment 1.11
to the Report of the National Bank
for 2014
78
INFORMATION
on foreign exchange purchase/sale by
resident economic entities* of the Republic
of Belarus in the domestic foreign
exchange market in 2013 – 2014
(USD mn)
Years
Operations
Sold
Purchased
2013
Balance of sale and
purchase
Sold
Purchased
2014
Balance of sale and
purchase
Operations
Years
Sold
Purchased
2013
Balance of sale and
purchase
Sold
Purchased
2014
Balance of sale and
purchase
*
January
February
March
April
May
June
1, 668.7
1, 851.8
1, 771.5
1, 605.2
1, 981.6
1, 577.0
2, 061.0
1, 861.5
1, 828.4
1, 875.9
1, 963.4
1, 799.4
For the six
months, total
11, 274.6
10, 570.8
183.1
1, 667.3
1, 756.4
89.2
-166.4
1, 563.6
1, 680.9
117.3
-404.6
1, 785.5
1, 845.6
60.1
-199.5
1, 842.5
1, 715.1
-127.4
47.6
1 ,982.9
2, 088.9
106.0
-164.0
2, 077.1
1, 984.8
-92.3
-703.8
10, 918.9
11, 071.7
152.8
August
September
October
November
December
2, 102.0
2, 121.2
1, 846.1
2, 019.5
1, 837.2
1, 922.5
1, 997.4
2, 026.8
1, 757.8
1, 719.2
2, 140.1
2, 174.5
For the year,
total
22, 955.2
22, 554.4
19.2
2, 094.3
1, 914.1
-180.2
173.4
1, 849.5
1, 810.9
-38.6
85.4
1, 887.7
1, 926.9
39.2
29.3
2, 002.1
1, 895.1
-107.0
-38.6
1, 657.7
1, 836.6
178.9
34.4
1, 702.6
2, 152.7
450.0
-400.7
22, 113.0
22, 608.0
495.0
July
Economic entities – commercial and non-commercial organizations, independent entrepreneurs, and non-bank financial institutions.
79
Attachment 1.12
to the Report of the
National Bank for 2014
INFORMATION
on foreign exchange purchase/sale by
natural persons in 2013 – 2014
Years
2013
2014
Years
2013
2014
Operations
Sold
Purchased
Balance of sale and
purchase
Sold
Purchased
Balance of sale and
purchase
Operations
Sold
Purchased
Balance of sale and
purchase
Sold
Purchased
Balance of sale and
purchase
January
February
622.7
700.8
636.9
572.8
665.8
608.1
731.0
679.0
707.2
704.7
619.2
884.2
(USD mn)
For the six
months, total
3, 982.7
4, 149.7
78.1
787.6
713.1
-74.5
-64.1
736.6
756.1
19.5
-57.6
776.7
863.8
87.2
-52.0
741.8
799.5
57.7
-2.5
842.1
959.4
117.3
265.0
866.6
898.8
32.2
167.0
4, 751.4
4, 990.8
239.4
September
October
November
December
August
March
April
May
June
685.3
1, 306.9
735.6
903.3
726.2
1, 058.1
733.1
1, 112.5
682.9
920.0
750.0
1, 225.4
For the year,
total
8, 295.9
10, 675.9
621.6
900.3
851.5
-48.7
167.7
880.0
787.7
-92.3
331.9
896.3
862.8
-33.5
379.5
851.1
944.8
93.7
237.1
668.6
993.4
324.8
475.3
627.3
1, 528.9
901.6
2, 380.0
9, 574.9
10, 959.9
1, 385.0
July
80
Attachment 1.13
to the Report of the
National Bank for 2014
INFORMATION
on the interest rate in the one-day interbank
market and the interest rates on the National
Bank’s operations
(% per annum)
55
50
45
40
35
30
25
20
01.12.2014
01.11.2014
01.10.2014
01.09.2014
01.08.2014
01.07.2014
01.06.2014
01.05.2014
01.04.2014
01.03.2014
01.02.2014
01.01.2014
15
10
Attachment 1.14
to the Report of the
National Bank for 2014
DYNAMICS
of interest rates in the deposit and credit markets in 2013 – 2014
(% per annum)
82
Attachment 1.15
to the Report of the
National Bank for 2014
INFORMATION
on securities market
(%)
100
Structure of annual issue of the securities market's main instruments
90
bonds under
local loans
government securities
80
70
60
corporate bonds
50
40
30
equities
20
10
0
2009
2010
2011
2012
2013
2014
(%)
Dynamics of the ratios of the securities market's main instruments
100%
100
bonds under local
loans
government securities
80%
80
corporate bonds
60%
60
40%
40
equities
20%
20
0%
0
01.01.2010 2010
01.01.2011 2011
01.01.2012
01.01.2013
2012
01.01.2014
2013
01.01.2015
2014
83
Attachment 2.1
to the Report of the
National Bank for 2014
CHANGE
in the index of the Belarusian ruble
real effective exchange rate as
measured by the PPI in 2014
(month to December of the previous year, %)
45
40
35
30
25
20
15
10
5
0
January
February
March
April
May
June
July
August September October November December
84
Attachment 2.2
to the Report
of the National Bank
for 2014
DYNAMICS
of broad money supply in 2014
Indicators
1. Cash in circulation - М0
2. Transferable deposits
natural persons
legal persons*
Monetary aggregate - М1
3. Other deposits
natural persons
legal persons*
4. Securities issued by banks (outside bank
circulation) in national currency
Ruble money supply М2*
Broad money - М3
For information:
Deposits
in
foreign
exchange,
USD bn
natural persons
legal persons*
Deposits in precious metals,
USD bn
*
(BYR trn)
Growth
Actual as at
01.01.2014 01.01.2015
12.3
13.9
24.8
27.8
10.2
12.4
14.6
15.5
37.1
41.8
40.4
48.4
22.9
27.2
17.5
21.2
BYR trn
1.6
3.0
2.2
0.8
4.7
8.0
4.4
3.6
%
13.2
12.3
21.9
5.6
12.6
19.8
19.1
20.7
1.8
79.3
193.3
0.7
90.8
239.4
-1.2
11.5
46.1
-62.5
14.5
23.9
11.3
7.3
4.0
11.6
8.0
3.6
0.3
0.7
-0.4
2.8
9.7
-9.6
0.035
0.045
0.010
Legal persons – commercial institutions, non-commercial institutions, and independent entrepreneurs
27.0
85
Attachment 2.3
to the Report
of the National Bank
for 2014
CHANGE
in the indicators of ruble money supply in
2014
(BYR bn)
4,373.4
3,630.1
2,220.9
1,621.8
822.9
-1,155.8
Cash in circulation
Transferable deposits of natural persons
Transferable deposits of legal persons
Other deposits of natural persons
Other deposits of legal persons
Securities issued by banks (outside bank circulation) in the national currency
86
Attachment 2.4
to the Report of the National Bank
for 2014
Regulatory legal acts
adopted in 2014 with a view
to improving regulation of banking operations
Edict of the President of the Republic of Belarus No. 218 “On Amending
and Modifying Edicts of the President of the Republic of Belarus” dated May 7,
2014 (National Legal Internet Portal of the Republic of Belarus, May 9, 2014,
1/15006).
Resolution of the Council of Ministers of the Republic of Belarus and the
National Bank of the Republic of Belarus No. 134/1 “On Amending and
Modifying Resolution of the Council of Ministers of the Republic of Belarus
and the National Bank of the Republic of Belarus No. 894/7 as of June 18,
2008” dated February 17, 2014 (National Legal Internet Portal of the Republic
of Belarus, February 20, 2014, 5/38447).
Resolution of the Council of Ministers of the Republic of Belarus and the
National Bank of the Republic of Belarus No. 1171/20 “On Amending
Resolution of the Council of Ministers of the Republic of Belarus and the
National Bank of the Republic of Belarus No. 1209/9 as of August 21, 2008”
dated December 12, 2014 (National Legal Internet Portal of the Republic of
Belarus, December 17, 2014, 5/39834).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 3 “On Amending Resolution of the Board of the National Bank of the
Republic of Belarus No. 577 as of November 13, 2012” dated January 4, 2014
(National Legal Internet Portal of the Republic of Belarus, January 15, 2014,
8/28241).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 116 “On Measures to Ensure that Loans are Available for Small and
Medium-sized Entrepreneurs” dated February 28, 2014 (National Legal Internet
Portal of the Republic of Belarus, March 7, 2014, 8/28406).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 116 “About Amending and Modifying Instructions on a Bank Transfer”
dated April 4, 2014 (National Legal Internet Portal of the Republic of Belarus,
May 20, 2014, 8/28669).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 253 “On Some Issues Relating to Lending to Natural Persons and
Financing Against the Assignment of a Monetary Claim (the Factoring)” dated
April 18, 2014 (National Legal Internet Portal of the Republic of Belarus, April
25, 2014, 8/28604).
87
Resolution of the Board of the National Bank of the Republic of Belarus
No. 260 “About Maximum Interest Rates on Bank Operations Designed to
Extend Monetary Funds (Loans) to Resident Legal Persons of the Republic of
Belarus” dated April 22, 2014 (National Legal Internet Portal of the Republic of
Belarus, May 7, 2014, 8/28636).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 291 “About Amending and Modifying Instructions on Procedures for
Making Settlements from Current (Settlement) Bank Accounts held in
Belarusian Rubles in the Order of Priority Established by Legislation” dated
May 5, 2014 (National Legal Internet Portal of the Republic of Belarus, May
28, 2014, 8/28710).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 471 “On Modifying Resolution of the Board of the National Bank of the
Republic of Belarus No. 577 as of November 13, 2012” dated July 23, 2014
(National Legal Internet Portal of the Republic of Belarus, August 2, 2014,
8/28961).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 582 “On Modifying Resolution of the Board of the National Bank of the
Republic of Belarus No. 260 as of April 22, 2014” dated September 18, 2014
(National Legal Internet Portal of the Republic of Belarus, September 27, 2014,
8/29142).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 675 “On Amending Resolution of the Board of the National Bank of the
Republic of Belarus No. 260 as of April 22, 2014” dated November 3, 2014
(National Legal Internet Portal of the Republic of Belarus, November 12, 2014,
8/29261).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 716 “About Amending and Modifying Instructions on a Bank Transfer”
dated November 25, 2014 (National Legal Internet Portal of the Republic of
Belarus, December 25, 2014, 8/29406).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 794 “About Amending and Modifying Instructions on Procedures for
Making Non-cash Transfers via Private Payment Systems” dated December 20,
2014 (National Legal Internet Portal of the Republic of Belarus, January 1,
2015, 8/29447).
88
Attachment 2.5
to the Report
of the National Bank
for 2014
Regulatory legal acts
adopted in 2014
to streamline the regulation of leasing activities
Edict of the President of the Republic of Belarus No. 99 “On Issues of
Regulating Leasing Activities” dated February 25, 2014 (National Legal
Internet Portal of the Republic of Belarus, February 27, 2014, 1/14857).
Law of the Republic of Belarus “On Amending and Modifying the Tax
Code of the Republic of Belarus” dated December 30, 2014 (National Legal
Internet Portal of the Republic of Belarus, January 3, 2015, 2/2222).
Law of the Republic of Belarus “On Amending and Modifying the Civil
Code of the Republic of Belarus” dated December 31, 2014 (National Legal
Internet Portal of the Republic of Belarus, January 9, 2015, 2/2224).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 423 “On Establishing the Forms of Application and Certificate on Inclusion
in the Register of Leasing Organizations and Approving the Instructions on
Procedures for Establishing and Maintaining Register of Leasing
Organizations” dated June 30, 2014 (National Legal Internet Portal of the
Republic of Belarus, July 23, 2014, 8/28891).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 495 “On Approving the Instructions on the Volume of and Procedures for
Disclosing Information on Leasing Activities and Financial State of Leasing
Organizations Included in the Register of Leasing Organizations” dated August
1, 2014 (National Legal Internet Portal of the Republic of Belarus, August 30,
2014, 8/29064).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 526 “On Approving the Rules of Conducting Leasing Activities” dated
August 18, 2014 (National Legal Internet Portal of the Republic of Belarus,
September 2, 2014, 8/29069).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 552 “On Approving the Instructions on the Volume and Content of Reports
and Information of a Leasing Organization Included in the Register of Leasing
Organizations, a Foreign Entity Conducting Leasing Activities in the Republic
of Belarus through a Permanent Establishment, Terms of and Procedures for
Compiling and Submitting Thereof to the National Bank of the Republic of
Belarus and Establishing Reporting and Information Forms” dated August 29,
89
2014 (National Legal Internet Portal of the Republic of Belarus, October 22,
2014, 8/29187).
90
Attachment 2.6
to the Report
of the National Bank
for 2014
Regulatory legal acts
adopted in 2014
to streamline the regulation of activities of
microfinancing institutions
Edict of the President of the Republic of Belarus No. 325 “On Attracting
and Granting Loans, Activities of Microfinancing Institutions” dated June 30,
2014 (National Legal Internet Portal of the Republic of Belarus, June 3, 2014,
1/15134).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 692 “On Establishing the Forms of Application and Certificate on Inclusion
in the Register of Microfinancing Institutions, Minimum Amount of the
Authorized Capital of a Commercial Microfinancing Institution and Approving
Instructions on Procedures for Establishing and Maintaining the Register of
Microfinancing Institutions” dated November 14, 2014 (National Legal Internet
Portal of the Republic of Belarus, December 31, 2014, 8/29427).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 776 “On Approving Instructions on Requirements to the Content of Rules
on Granting Loans Which are Approved by a Microfinancing Institution and
Procedures for Providing Information on Grating Microloans by
Microfinancing Institutions” dated December 17, 2014 (National Legal Internet
Portal of the Republic of Belarus, December 31, 2014, 8/29452).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 805 “On Certain Issues of Activities of Non-profit Microfinancing
Institutions Established in the Legal Organizational Form of a Consumer
Cooperative” dated December 23, 2014 (National Legal Internet Portal of the
Republic of Belarus, January 1, 2015, 8/29455).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 837 “On Establishing the Forms of Reporting and Other Information on the
Activities of Microfinancing Institutions and Approving Instructions on the
Amount, Content, Terms and Procedures for Compiling and Submitting Reports
and Other Information on the Activities of Microfinancing Institutions” dated
December 29, 2014 (National Legal Internet Portal of the Republic of Belarus,
February 4, 2015, 8/29456).
91
Attachment 2.7
to the Report of the National Bank
for 2014
Regulatory legal acts
designed to improve foreign exchange
regulation and foreign exchange control,
which were adopted in 2014
Resolution of the Board of the National Bank of the Republic of Belarus
No. 255 “On Amending and Modifying Resolution of the Board of the National
Bank of the Republic of Belarus No. 129 dated September 13, 2006” dated
April 21, 2014 (National Legal Internet Portal of the Republic of Belarus, May
9, 2014, 8/28655).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 256 “On Amending and Modifying Instructions on the Procedures for
Conducting Foreign Exchange Operations with Participation of Legal Persons
and Individual Entrepreneurs” dated April 21, 2014 (National Legal Internet
Portal of the Republic of Belarus, May 13, 2014, 8/28656).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 508 “On the Foreign Exchange Sale/Purchase Transactions in the Domestic
Foreign Exchange Market” dated August 11, 2014 (National Legal Internet
Portal of the Republic of Belarus, August 27, 2014, 8/29037).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 769 “On Amending and Modifying Resolution of the Board of the National
Bank of the Republic of Belarus No. 46 dated April 16, 2009” dated December
11, 2014 (National Legal Internet Portal of the Republic of Belarus, December
24, 2014, 8/29404).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 786 “On Some Issues of Banks’ Functioning” dated December 19, 2014.
Resolution of the Board of the National Bank of the Republic of Belarus
No. 788 “On Modifying Resolution of the Board of the National Bank of the
Republic of Belarus No. 508 dated August 11, 2014” dated December 19, 2014
(National Legal Internet Portal of the Republic of Belarus, December 21, 2014,
8/29392).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 796 “On Modifying Resolution of the Board of the National Bank of the
Republic of Belarus No. 129 dated September 13, 2006” dated December 20,
2014 (National Legal Internet Portal of the Republic of Belarus, December 21,
2014, 8/29391).
92
Attachment 2.8
to the Report of the National Bank
for 2014
Regulatory legal acts
designed to optimize
regulatory legal framework
on accounting and financial reporting,
which were adopted in 2014
Resolution of the Board of the National Bank of the Republic of Belarus
No. 183 “On Amending and Modifying the Instructions on Complying Annual
Financial Statements by Banks and Non-bank Financial Institutions of the
Republic of Belarus” dated March 27, 2014 (National Legal Internet Portal of
the Republic of Belarus, May 15, 2014, 8/28660).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 234 “On Approving the Instructions on Accounting of the Operations on
Providing, Obtaining and Repaying Credits and Foreign Loans, Financing
Against the Assignment of Monetary Claim (Factoring) in Banks and Non-bank
Financial Institutions of the Republic of Belarus” dated April 14, 2014
(National Legal Internet Portal of the Republic of Belarus, May 24, 2014,
8/28703).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 238 “On Approving the Instructions on Accounting of the Operations
Involving the Transfer of Fixed Assets to Financial Lease (Leasing) or Lease in
Banks and Non-bank Financial Institutions of the Republic of Belarus and
Annulling Certain Regulatory Legal Acts of the National Bank of the Republic
of Belarus” dated April 14, 2014 (National Legal Internet Portal of the Republic
of Belarus, May 4, 2014, 8/28625).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 304 “On Amending and Modifying National Accounting Standard 19
“Remuneration of Employees” (NAS 19)” dated May 7, 2014.
Resolution of the Board of the National Bank of the Republic of Belarus
No. 462 “On Approving the Instructions on Accounting of the Operations with
Securities and Long-Term Financial Investments in Banks and Non-bank
Financial Institutions of the Republic of Belarus” dated July 22, 2014 (National
Legal Internet Portal of the Republic of Belarus, September 4, 2014, 8/29068).
Resolution of the Board of the National Bank of the Republic of Belarus
No. 664 “On Amending and Modifying Resolution of the Board of the National
Bank of the Republic of Belarus No. 511 dated November 9, 2011” dated
October 29, 2014 (National Legal Internet Portal of the Republic of Belarus,
January 27, 2015, 8/29509).
93
Resolution of the Board of the National Bank of the Republic of Belarus
No. 738 “On Amending and Modifying the Instructions on the Procedures for
Applying the Chart of Accounts in Banks and Non-bank Financial Institutions
of the Republic of Belarus” dated December 3, 2014 (National Legal Internet
Portal of the Republic of Belarus, December 25, 2014, 8/29407).
94
Attachment 2.9
to the Report
of the National Bank
for 2014
DYNAMICS
of number of payment instructions settled via the ASIS in 2010 - 2014
(thousand units)
104
95
Attachment 2.10
to the Report
of the National Bank
for 2014
DYNAMICS
of amounts of payment instructions settled via the ASIS in 2010 - 2014
(BYR trn)