The banking system of the Republic of Belarus

The banking system of the Republic of Belarus

The Belarusian banking system consists of two parts. At the first level is the national Bank of the Republic of Belarus. At the second level — commercial banks, non-Bank financial institutions, as well as representative offices of foreign banks.

The national Bank is accountable to the Government and the President of the Republic of Belarus. Its governing body is the Board of Directors of the National Bank of the Republic of Belarus. Its functions include the determination of the monetary policy of the Republic, the issuance of licenses and control over organizations engaged in banking and credit functions. Also, its functions include the issue of money, currency control, determination of the order of non-cash payments and etc.

The responsibilities of the National Bank:

- regulation of relations in the field of lending;

- procedure of cash payments;

- issue of money, their transfer to banks and other organizations;

- loans to other banks;

- solving the problems of the banking system of Belarus;

- other issues of functioning, control and long-term development of the financial sector.

The National Bank determines the refinancing rate-the amount from which interest rates on loans and deposits are calculated, as well as other financial indicators.

The second level is represented by commercial banks that provide a wide range of services to legal entities and individuals, such as:

- accepting money for deposits;

- delivery of credits;

- settlement and cash services for legal entities and individuals;

- remittance;

- guarantees and transaction support;

- issue and maintenance of Bank cards, etc.

The system of  Belarusian second-tier banks is based on the principle of the European Union banks, although it is much inferior to them in size.

accountable –подотчетен,

governing body – управляющий орган,

lending – кредитование,

                                                                                     issue of money – эмиссия денег,

legalentity – юридическое лицо,

remittance – денежные переводы,