Estimated values of standard risk

Since March 1, 2019, the National Bank put in place a set of measures of macroprudential nature designed to limit systemic risks generated by the business models of banks with high appetite for risk.

The basis of this system is formed by the approach, according to which the strengthened regulatory requirements in the area of capital adequacy, build-up of special provisions to cover potential losses and allocation of the required reserves fund are applied. An excess of the interest rates on new deposits, credits and issued bonds set by banks over the corresponding estimated values of standard risk (hereinafter – the “EVSR”) is used as an indicator of the increased level of risk of the business models implemented by banks.

The EVSR are calculated by the National Bank every month on the basis of average interest rates on six financial instruments of the credit and deposit market in the national currency of systemically important banks attributed to the Group of Importance 1:

new term revocable bank deposits of natural persons;

- new term irrevocable bank deposits of natural persons ( across maturity buckets: from 1 to 6 months (inclusively); from 6 months to 1 year (inclusively); and over 1 year);

- new credits issued to natural and legal persons (excluding credits issued on preferential terms by the decisions of the President and Government of the Republic of Belarus at the expense of republican and local authorities’ funds).

The algorithm of the EVSR calculation is based on the arithmetic average and the degree of variation of interest rates taken into account.

The EVSR for new term bank deposits is calculated on the basis of data on average interest rates on natural persons’ deposits and used for deposits of both natural and legal persons.

Table – Values of Estimated Standard Risk, % per annum

List of indicators Value, % per annum
March 2019 April 2019

EVSR for new term revocable bank deposits of natural and legal persons

7.79 7.97

EVSR for new term irrevocable bank deposits of natural and legal persons with maturity from 1 to 6 months (inclusively)

9.67 9.79

EVSR for new term irrevocable bank deposits of natural and legal persons with maturity from 6 months to 1 year (inclusively)

10.59 10.65

EVSR for new term irrevocable bank deposits of natural and legal persons with maturity over 1 year

12.66 12.74

EVSR for new credits issued to legal persons (excluding those issued on preferential terms)

11.87 11.99

EVSR for new credits issued to natural persons (excluding those issued on preferential terms)

15.41 15.49