Bank has granted approval on deposit and loan measures - anticipating modifications
In the realm of Belarusian finance, the Capital Requirements Regulation (CRR) continues to play a crucial role in shaping the banking landscape. The CRR, a set of rules mandating the amount and quality of capital that banks must hold to absorb unexpected losses, is designed to ensure the stability and resilience of the banking system.
Recently, the Financial Regulator has announced changes to the CRR indicators for August 2025. For new non-withdrawable deposits with a term of more than a year, the CRR is set at 15.64% per annum. This increase in the CRR is expected to lead to a rise in rates, as banks seek to maintain profitability while meeting stricter capital standards.
Consequently, the average annual interest rate on new time deposits of citizens in national currency for June 2025 saw a slight increase, standing at 14.2% per annum for deposits opened for a term of more than 365 days, and 12.2% for the same period in June. It's worth noting that in May, the average annual interest rate on new time deposits was 0.5% higher.
The increase in the CRR also impacts loan rates. For new loans, excluding preferential ones, the CRR stands at 19.10% per annum in August 2025. This could potentially lead to higher interest rates on loans, although the exact impact varies among financial institutions.
Despite these changes, the CRR for August remains unchanged from previous announcements. The new CRR values for deposits and loans will be effective for the entire month of August 2025.
In addition, the Financial Regulator has summarized the results of the first month of summer on the deposit and credit markets. Notably, citizens' time deposits in national currency increased by Br298 million, or 2.4% in June 2025.
The CRR, in its essence, is the upper limit of annual interest rates on bank products. Its changes reflect the ongoing efforts to maintain financial stability and ensure the resilience of the banking system, while also influencing the availability and pricing of credit in the economy.
[1] Basel Committee on Banking Supervision. (n.d.). Basel III: A global regulatory framework for more resilient banks and banking systems. Retrieved from https://www.bis.org/publ/bcbs239.htm [3] Financial Stability Board. (n.d.). Basel III: A global regulatory framework for more resilient banks and banking systems. Retrieved from https://www.fsb.org/2009/12/basel-iii-framework-for-more-resilient-banks-and-banking-systems/
- The increase in the CRR for banking products in Belarus, as announced by the Financial Regulator in August 2025, affects not only deposit rates but also loan rates, potentially leading to higher interest rates in both sectors.
- The CRR, a key component of the global regulatory framework for banking, such as Basel III, plays a pivotal role in the Belarusian finance sector, ensuring stability and resilience in the banking system while influencing the availability and pricing of credit in the economy.
