MIL OSI – Source: National Bank of the Republic of Belarus in English – Press Release/Statement
Headline: Liquidity ratios Basel III as secure functioning requirements, as well as additional capital buffers, are established for Belarusian banks since January 1, 2018 (Press Release)
Liquidity ratios Basel III as secure functioning requirements, as well as additional capital buffers, are established for Belarusian banks since January 1, 2018
Liquidity ratios Basel III as secure functioning requirements, as well as additional capital buffers, are established for Belarusian banks since January 1, 2018With the aim to improving requirements to secure and sustainable functioning of banks, the Board of the National bank of the Republic of Belarus adopted Resolution No.180 dated May 18, 2017 “On Establishing Instruction on the Procedures of Defining Systemically Important Banks, Non-bank Financial Institutions and Introducing Modifications and Amendments to Certain Regulatory Legal Acts of the National Bank of the Republic of Belarus”. The document will enter into force since January 1, 2018.According to the Resolution, liquidity ratios Basel III are established as secure functioning requirements for the banks of the Republic of Belarus (Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR)), as well as requirements to providing reporting on their implementation and analytical information on the instruments of liquidity risk monitoring. Resolution No.180 also establishes the procedure of considering banks as systemically important ones. The given category will include the banks, the unsatisfactory financial state and (or) termination of effecting certain operations of which may have negative influence on the whole banking sector. With the purpose of limiting the level of systemic risks of the banking sector and preventing their appearance by Resolution 180, an additional buffer of systemic significance was introduced in the amount of 1 to 1.5 percentage points (depending on the significance group) as an increase to the value of the adequacy ratio of the Tier I core capital. Besides, with the purpose of limiting (decreasing) risks associated with the undue credit activity of banks within the period of the excessive growth of the lending to economy, maintaining the lending level and covering risks, the possibility of applying countercyclical buffer in the amount of 0 to 2.5 percentage points is stipulated after the ending of such period. The given modifications and amendments to the acting requirements of the National Bank in the sphere of banking supervision will contribute to strengthening control over risks in the banking system from the side of the regulator, as well as to improving the system of management of capital, liquidity and liquidity risk in banks.