The National Bank was Assigned the Authorities to Regulate Rating Activity in the Republic of Belarus
The National Bank was assigned the authorities to carry out government regulation of rating activity in the Republic of Belarus. The corresponding decision was taken by Edict of the President of the Republic of Belarus No. 42 "On Amending and Modifying Edicts of President of the Republic of Belarus" dated February 7, 2019 (hereinafter – Edict No. 42).
The rating activity means the activity involving analysis (assessment) of legal persons and financial instruments issued thereby. Primarily, this means the assessment of the level of creditworthiness and financial sustainability of a rating recipient, as well as of the level of credit risk and financial sustainability of its financial instruments.
In compliance with Edict No. 42, the National Bank establishes the order of organization and conduct of rating activity and approves regulatory legal acts involving its regulation.
In addition, the National Bank in concert with the Council of Ministers of the Republic of Belarus determines the procedures for accrediting rating agencies, including the procedures for their incorporation in the register of rating agencies (exclusion therefrom), as well as the composition of data included therein.
As part of implementation of Edict No. 42, within 2019 the National Bank will approve the regulatory legal acts, which specify:
- requirements to a rating agency for its incorporation in the register of rating agencies, as well as to its individual and control bodies, participants (founders, shareholders), members of the Council of Directors (Supervisory Board), members of the collective executive body, and rating analysts;
- requirements to the methodology of a rating agency, procedures for submission of this methodology to the National Bank and coordinating it therewith, as well as the amendments thereto;
- procedures for disclosure of information by a rating agency, including the composition, form and terms of its provision;
- requirement to safety and protection of information obtained in the course of the rating agency’s activity; and
- procedures for and terms of composition and submission of reports and other information in the area of rating activity to the National Bank.
Development in the Republic of Belarus of a legal basis for carrying out rating activity complies with the global practice. Establishment of the national rating agencies and formation of ratings thereby will make it possible to the market participants to obtain objective information on the state of organizations which obtained ratings, as well as enhance investment activity in the country.