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 at least once in three months on the basis of average interest rates established by the systemically important banks of Group I over the month preceding the calculation month, in terms of six financial instruments of the credit and deposit market in the national currency:

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.

Values of the EVSR are valid within three months starting from the month that follows the month of their establishment

Table – Values of Estimated Standard Risk, % per annum

List of indicators Value, % per annum
March 2019 April 2019 May 2019 June 2019 July 2019 August 2019 September 2019 October 2019 November 2019 December 2019 January 2020 February - April 2020

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

7.79 7.97 7.91 7.79 7.60 7.45 7.22 7.19 7.05 6.84 6.65 6.21

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

9.67 9.79 10.06 9.86 9.69 9.67 9.61 9.72 9.80 9.69 9.66 9.22

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 10.96 10.84 10.71 10.72 10.66 10.63 10.56 10.59 10.39 9.95

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

12.66 12.74 12.94 12.98 12.93 12.94 12.88 12.87 12.70 12.66 12.51 12.05

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

11.87 11.99 12.04 12.00 11.84 11.84 11.77 11.75 11.73 11.65 11.56 11.48

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

15.41 15.49 15.55 15.36 14.59 14.50 13.81 13.70 13.18 12.89 12.47 12.32