Unchanged: NBB sets estimated standard risk rates for Nov 2020
<p> MINSK, Oct 23 - PrimePress. The National Bank of Belarus (NBB) has posted estimated standard risk rates for Nov 2020 with regard to instruments of the credit-and-deposit market. The rates have remained unchanged month on month. </p> <p> </p> <p> Belarus’ central bank posts monthly updates on estimated standard risk rates on the NBB web site in the Financial Stability section. </p> <p> </p> <p> The estimated standard risk rate for new revocable time deposits of individuals in Belarusian rubles, excluding preferential loans, in Nov 2020 will stand at 11.74% per annum (11.74% in Oct 2020). For new loans in the national currency provided to individuals, excluding preferential loans, the rate is 13.35% per annum (13.35%) </p> <p> </p> <p> The regulator’s estimated standard risk rates also remained unchanged month-on-month in September. </p> <p> </p> <p> As previously reported, in March 2020, the National Bank temporarily suspended the practice of setting and applying standard risk rates for deposit instruments due to the fact that under the current circumstances, banks should have greater flexibility in responding to changes in the market situation. </p> <p> </p> <p> Accordingly, the NBB has chosen not to set estimated standard risk rate for new revocable time deposits of individuals in Belarusian rubles for June 2020 (6.21% per annum in Feb 2020), new non-revocable personal deposits in Belarusian rubles placed with banks for a period fr om 1 to 6 months (9.22% per annum in Feb 2020); 6-12 months (9.95% per annum in Feb 2020); over 1 year (12.05% per annum in Feb 2020). </p> <p> </p> <p> Belarus’ central bank posts monthly updates on estimated standard risk rates on the NBB web site in the Financial Stability section. </p> <p> </p> <p> Intended to highlight a threshold on interest rates associated with moderate risks, the NBB estimates are based on the analysis of interest rates of Tier 1 banks. </p> <p> </p> <p> The list of Tier 1 system-relevant banks includes Belarusbank, Belagroprombank, Belgazprombank, BPS-Sberbank, Priorbank, Bank BelVEB, and Belinvestbank. </p> <p> </p> <p> Banks, which exceed the threshold, will have to pay more to the mandatory reserve fund, and meet higher equity capital requirements. </p> <p> </p> <p> Estimated standard risk rates are used by the regulator to lim it risks taken on by banks, which knowingly pursue a high-risk business model or practise bad-faith competition. The instrument is intended to contribute to financial stability via effective distribution of financial resources in the economy. End </p>
2020-10-24
Primepress
Unchanged: NBB sets estimated standard risk rates for Nov 2020
MINSK, Oct 23 - PrimePress. The National Bank of Belarus (NBB) has posted estimated standard risk rates for Nov 2020 with regard to instruments of the credit-and-deposit market. The rates have remained unchanged month on month.
Belarus’ central bank posts monthly updates on estimated standard risk rates on the NBB web site in the Financial Stability section.
The estimated standard risk rate for new revocable time deposits of individuals in Belarusian rubles, excluding preferential loans, in Nov 2020 will stand at 11.74% per annum (11.74% in Oct 2020). For new loans in the national currency provided to individuals, excluding preferential loans, the rate is 13.35% per annum (13.35%)
The regulator’s estimated standard risk rates also remained unchanged month-on-month in September.
As previously reported, in March 2020, the National Bank temporarily suspended the practice of setting and applying standard risk rates for deposit instruments due to the fact that under the current circumstances, banks should have greater flexibility in responding to changes in the market situation.
Accordingly, the NBB has chosen not to set estimated standard risk rate for new revocable time deposits of individuals in Belarusian rubles for June 2020 (6.21% per annum in Feb 2020), new non-revocable personal deposits in Belarusian rubles placed with banks for a period fr om 1 to 6 months (9.22% per annum in Feb 2020); 6-12 months (9.95% per annum in Feb 2020); over 1 year (12.05% per annum in Feb 2020).
Belarus’ central bank posts monthly updates on estimated standard risk rates on the NBB web site in the Financial Stability section.
Intended to highlight a threshold on interest rates associated with moderate risks, the NBB estimates are based on the analysis of interest rates of Tier 1 banks.
The list of Tier 1 system-relevant banks includes Belarusbank, Belagroprombank, Belgazprombank, BPS-Sberbank, Priorbank, Bank BelVEB, and Belinvestbank.
Banks, which exceed the threshold, will have to pay more to the mandatory reserve fund, and meet higher equity capital requirements.
Estimated standard risk rates are used by the regulator to lim it risks taken on by banks, which knowingly pursue a high-risk business model or practise bad-faith competition. The instrument is intended to contribute to financial stability via effective distribution of financial resources in the economy. End