The gloomy picture of the Belarusian banking system and its economy

The Belarusian banking system is facing a crisis because of the deflations of the National Currency. As recent as on May 2011, banks in Belarus have lost $ 11.5 M as regards tangible assets and also $2.2M in capital because of depreciation. Non-residents also have to bear the grunt of the depreciation since they lost $ 0.28 M of the money which they have put into the banking system. The situation does not seem to improve in the near future and the growth sector appears to be gloomy in the subsequent years.

The Belarusian banks for the moment will make losses due to the crisis and have to think a way out to come out of the crisis.

In the beginning of the year 2009, such deflation of the Belarusian economy was seen and at that period the national currency was cheapened by 20 percent. The experts were of the opinion that it will result in the crisis of the entire system but it did not turn out to be so.  However the severity of the recent crisis cannot be ruled out since it has brought along with it the depreciation of the ruble by 65 percent in the month of May. Because of this the banks have to endure grave dilemma which may compel some of them to leave the market. Earlier when the depreciation gripped the Belarusian economy, help was at hand in the form of The National Bank of the Republic of Belarus since it increased the credit aid scale for the economy. Also it was selling currency from its treasury and helped the economy to function normally. But, regarding the current crisis the problem has surfaced all the more because now the NBRB deprived the banks and the economy of the support.

The Belarusian banks for the moment will make losses due to the crisis and have to think a way out to come out of the crisis.  We now hope that Belarusian banking system and the economy as a whole will build up soon and the NBRB will play a central part in finding the solution.

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