The banking system
The Banking Code of the Republic of Belarus constitutes the legal basis for
operation of the national banking system.
The banking system of Belarus is a two-level system consisting of the
National Bank of the Republic of Belarus and of commercial banks.
Supervising functions, registration and licensing of commercial banks are
exercised by the National Bank.
The procedure of formation and registration, the rights and duties and
functions of commercial banks and of the National Bank of the Republic of
Belarus, as well as standards and norms of banking supervision do not differ
in principle from similar regulatory standards of states with a developed
market economy. All this allows the national banking system a deeper
integration into the world banking system.
As for 1 January 2002, the banking system of the Republic of Belarus was
constituted by 28 commercial banks, of which 20 were banks with
participation of foreign capital. On the average, the Republic has one
credit institution (banks and banks' subsidiaries) per 18,000 people.
Belarus can be classified as a country with a high share of concentration of
banking capital in the group of leading banks. The six largest banks of
Belarus, as regards their total assets, are" "Belarusbank", "Belagro-
prombank", "Belpromstroybank", "Priorbank", "Belvnesheconombank", and
"Belbusinessbank". Their share in the total amount of assets of the
operating banks of the Republic constitutes about 85%. By this indicator
Belarus corresponds approximately to such countries as Sweden, the
Netherlands, Finland, and Greece.
As for 1 January 2001, the state had its share in the authorised capital of
13 commercial banks (privatisation processes in Belarus are conducted in
conformity with the Law "On Destatisation And Privatisation Of State
Property In The Republic of Belarus", which was passed in January 1993).
However the share of the state constituted more than 50% in the authorised
capital of only 7 banks. These banks, along with others, conduct credit
support of the key state programmes of social and economic development of
the country.
Shareholders of the Belarusian banks are banks, firms and natural persons
from Russia, Great Britain, USA, Switzerland, Germany, Austria, Latvia,
Panama, Belize, Ukraine, the Bahamas, Ireland, Finland, Cyprus, and the
Republic of Nauru. The share of foreign investments in the gross authorised
capital of the banks operating in the territory of Belarus constitutes about
6% and is gradually increasing.
A number of known banks from Germany, Russia, Poland and other countries
(for example "Commerzbank", "Dresdner Bank", "Bank Depozytovo Kredytovy w
Lublinie", etc.) opened their representations in Belarus.
Profitability of the Belarusian banks as regards their equity constituted,
according to the results of 2000, 30% on the average for all banks, and 48%
for joint and foreign banks.
