1. Banking Sector of the Republic of Belarus -
Stabilization and Development
Member of the Board
Head of Banking Supervision Directorate of the National Bank of the Republic of Belarus
Helen Mashnina

2. 24 banks Main Characteristics of the Banking Sector 5 state-owned
Structure of investments in the banks’ authorized funds
24 banks
5 private
4 being liquidated
5 state-owned
14 foreign
Total authorized fund of Belarusian banks: USD2.6 billion
Share of foreign capital in the banks’ authorized funds,%
The quota of participation of foreign capital in the Belarusian banking sector is no more than 50 percent of the total authorized capital
The data as of February 28, 2019

3. Performance Indicators of the Banking Sector
Assets dynamics, USD bn
Regulatory capital dynamics, USD bn
Distribution of Assets, %
Distribution of Capital, %
The minimum amount of a bank’s regulatory capital as of 2019 Q1 – BYN55.39 million, or USD25.66 million in the equivalent
The regulatory capital adequacy of the banking sector – 17.9 percent
■ – state-owned banks ■ – foreign banks ■ – private banks
The data as of February 28, 2019

4. Distribution of Liabilities, %
Banks’ Liabilities
Distribution of Liabilities, %
■ – Natural persons’ funds
■ – Economic entities’ funds
■ – Other liabilities (banks’ equity capital, revaluation accounts, interbank and interbranch settlements, securities issued by banks, formation of special provisions)
■ – Non-residents’ funds
■ – Funds of central government and local governments
■ – Funds of other deposit organizations
■ – National Bank’s funds
March 1, the share of non-performing assets %.
May 1, % (an increase of 2.6 percentage points).
This indicator is one of the most important in the process of supervisory activities.
The data as of February 28, 2019

5. Banking Supervision and Regulation
Since January 1, 2016, Basel III international standards have been set as prudential standards
Regulatory capital (10%)
Tier I
Core Tier I
deductions
Additional Tier I
Tier II
Leverage (3%)
Ratio of Tier I to the total amount of claims subject to risks
Conservation buffer (2.5%)
For each bank is 2.5 %
Since January 1, 2018, Basel III liquidity indicators, a countercyclical buffer, and a systemic importance buffer have been established as prudential standards
Liquidity coverage ratio (LCR)
Net stable funding ratio (NSFR)
no less than 100%
liquidity risk monitoring instruments
Countercyclical buffer (0%)
0 – 2.5% in line with the decisions of the NBRB Board, now – 0%
Systemic importance buffer
Group of Importance I II
1.5% 1%

6. Remuneration and Compensation system
Corporate Governance
Remuneration and Compensation system
setting the list of employees accepting risks
definition of forms of payment for labour and types of payment to employees
definition of terms of payment to employees accepting risks
Shareholders’ General Meeting
Articles of Association and (or) local regulatory legal acts
Board of Directors (Supervisory Board)
Remuneration Committee
(systemically important banks, non-bank financial institutions, Development Bank)
Articles of Association and (or) local regulatory legal acts
setting the amounts of remunerations and compensations based on the bank’s
performance results and risks accepted by an employee and (or) bank

7. The “House of SREP” BUSINESS MODEL ASSESSMENT GOVERNAN-CE ASSESSMENT
CAPITAL ADEQUACY ASSESSMENT
LIQUIDITY ASSESSMENT
Viability and sustainability of business model assessment
(Score + Rationale)
Assessment of governance, risk management and internal control systems
(Score + Rationale)
Block 1
Assessment of Risk Level and quality of risk management (for each risk:
CR, MR, OR, IRRBB)
Block 2
ICCAP asses-sment
Block 3
Supervisory stress tests
Block 1
Assessment of Risk Level (for each risk: short-term liquidity, funding risk)
and quality of liquidity risk management
(Score + Rationale)
Block 2*
Internal liquidity
ILAAP
Block 3*
Supervi-sory stress tests
Capital adequacy assessment
(Score + Rationale)
* perspective
Overall SREP assessment
=> Score + Rationale/main conclusions
Supervisory Examination Programe (SEP)
Quantitative capital measures
Other supervisory measures

8. Mutual Evaluation of the Republic of Belarus
as to Compliance With FATF Standards
Evaluation stages
2018
Banks demonstrated a high level of understanding of ML/FT risks. The risk of financing terrorist activities is rated as low.
National ML/FT Risk Assessment
2019
The on-site mission revealed that in the banking system the effective AML/CFT system is used and the national legislation complies with the FATF recommendations.
EAG expert visiting mission
Technical compliance with legislation
Evaluating the effectiveness of the country's AML / CFT system
Presentation of report at the EAG plenary meeting in November 2019
Country Mutual Evaluation Report

9. Thank you for attention!