A legal framework for carrying out rating activities is defined in Belarus
The National Bank of the Republic of Belarus, as part of the formation of the legal framework for conducting rating activities, approved Regulation on the Procedures for Organizing and Carrying out Rating Activities (Resolution of the Board No. 325 dated August 12, 2019 (Russian version), hereinafter – the "Regulation"), as well as the Instructions on the Requirements for the Rating Agency Methodology and the Procedure for Compiling and Submitting Reports and Other Information of the Rating Agency to the National Bank (Resolution of the Board No. 324 of August 12, 2019 (Russian version), hereinafter – the "Instructions").
These resolutions were published on the National Legal Internet Portal of the Republic of Belarus on September 17, 2019 and come into force on January 1, 2020.
The Regulation defines the legal basis for the implementation of rating activities and the activities of rating agencies in the Republic of Belarus. In particular, it establishes requirements to a rating agency for its inclusion in the register of rating agencies, requirements for governing bodies and the controlling body of a rating agency, participants (founders, shareholders) of a rating agency, employees of a rating agency, disclosure of information by a rating agency, safety and protection of information obtained in the course of the activities of a rating agency.
In accordance with the Regulation, a rating agency is created in the form of a business entity and can carry out rating actions and provide services related to credit ratings, as well as additional services. At the same time, the rating agency is not entitled to render consulting services and combine rating activities in the Republic of Belarus with other types of entrepreneurial activity.
The Instructions establish the requirements for the rating agency’s methodology, the procedure for submitting the methodology to the National Bank and agreeing therewith, as well as the amendments introduced thereto, determine the procedure for and terms of compiling and submitting reports and other information to the National Bank in the field of rating activities.
In line with the Instructions, a rating agency can have one or more methodologies necessary to carry out its activities. The methodology, as well as the changes introduced thereto, are approved by the methodological committee pursuant to the legislation and local legal acts of the rating agency. Reporting and other information in the field of conducting rating activities is compiled based on accounting and reporting data, contracts and other information on the activities of the rating agency, which can be confirmed in written form.
The determination of the requirements and conditions for the implementation of rating activities will make it possible to form the legal basis for the establishment of national rating agencies. The introduction of a system for assigning and using ratings on a national scale will contribute to further development of the domestic financial market and increase in its transparency, including by dint of providing objective information about the status of organizations that have received a rating.