In accordance with the press release posted on the official website of the National Bank, the regulator took some measures to increase the ability of banks to provide financial support to Belarusian organizations in the face of increased influence of external negative factors.
These measures are temporary and are established by the National Bank for the period until December 31, 2020 inclusive. They are:
- The standard for the maximum risk per one debtor (or a group of interrelated debtors) is increased, within which banks are allowed to lend to organizations, from 25% to 35% of the bank’s regulatory capital.
- Values of the minimum amount of the regulatory capital of the bank, NCFD are set at the rate effective on March 1, 2020, without indexation.
- The minimum amount of regulatory capital is one of the standards for the safe functioning of banks. The standard is set in Belarusian rubles and its value is subject to indexation (in the last month of each quarter), taking into account the consumer price index published by Belstat, in order to objectively assess the financial stability of banks.
- The individual requirements for bank assets are changing. When classifying assets exposed to credit risk and creating special reserves (hereinafter referred to as special reserves), banks are granted the right to:
- not take into account the criterion of sufficiency of receipts in foreign currency from the debtor;
- not recognize the debt restructured regardless of the number of amendments made to the contracts based on the assessment of the cash flow of the debtor and its ability to fulfill obligations to the bank. Since a special procedure for its classification is applied to restructured debt, the non-recognition of restructured debt will slightly reduce the burden on banks when they form special reserves.