Page 19 - BELRptJune18

8.0 Financial & capital markets 8.1 Bank sector overview
In the first quarter of 2018 Belarusian ruble deposits of individuals increased while deposits in foreign currency virtually did not change, Dmitry Murin, Head of the Central Office for Monetary Policy and Economic Analysis of the National Bank of the Republic of Belarus (NBRUB), during an expanded-participation session of the NBRUB Board.
As banks offered higher revenues for new deposits, fixed-term ruble deposits of Belarusians increased by 6.7% in the first quarter of 2018 . The share of irrevocable deposits in the structure of deposits made by natural persons continued growing and reached 56.6% in March 2018. Long-term deposits represented the bulk of irrevocable deposits. Their share as of 1 April 2018 surpassed 70%. In the first quarter of 2018 the volume of foreign currency deposits made by individuals virtually did not change and was close to $8.4bn. Meanwhile, the share of transferable deposits continued growing reflecting the nation's desire to get more fluid assets bearing in mind falling interest rates on foreign currency deposits. Fixed-term foreign currency deposits of individuals dropped by nearly $160mn in the first quarter of 2018 . Transferable deposits grew by $112mn. Bank bonds increased by $28mn while precious metals deposits grew by $15mn.
Fixed-term Belarusian ruble deposits of individuals have increased by 6.7% since the beginning of the year in January-March, according to National Bank of Belarus (NBB). At the same time, the volume of foreign currency deposits made by individuals virtually did not change in the first quarter of the year, and was close to $8.4bn, according to BELTA news agency. Significant growth of ruble deposits are attributed to the fact that rates for FX deposits have reached historically low level in Belarus (no more than 2.4% per year for long-term deposits). The result followed significant cut of the key refinance rate over the past years. According to NBB, the regulator could cut the rate to 10% in 2018. In March, the NBB left unchanged its key refinancing rate at 10.5% following a cut of the rate by 0.5 percentage points (pp) in February. According to official data, inflation in Belarus stood at 0.8% month-on-month in March (4.5% year-on-year). In November, the National Bank of Belarus (NBB)'s governor Pavel Kallaur said that the regulator estimates inflation will be about 6% in 2018.
China's CITIC Bank is in talks with the Belarusian government to buy a stake in one of the state-owned banks , the government in Minsk said in a statement following a visit by a delegation from the CITIC Group, led by its president Wang Jiong. "The possibility of buying a stake in a Belarusian bank has already been discussed with CITIC Bank top executives and the Chinese side expressed an interest in buying a Belarusian bank," the statement reads. "We could suggest two state banks for your consideration. If you are interested, we are ready to discuss terms." Earlier, the European Bank for Reconstruction and Development (EBRD) reached an agreement with the Belarusian government to privatise state-owned Belinvestbank after broadening its business activities and outreach. The EBRD is going purchase a stake of 25% plus one share in the bank, after which controlling stakes will be sold to one or more strategic investors. The EBRD insists on privatisation of Minsk-headquartered state-owned Bank Moscow-Minsk (BMM). In 2017, the EBRD extended a €20mn financing programme to BMM. The funds are
19 BELARUS Country Report June 2018 www.intellinews.com