Banking system will be cleared of small banks

April 22, 2016 19:12

The National Bank has revoked licenses of JSC InterPayBank and BIT-Bank Ltd. As anticipated, the National Bank decided to reduce the number of banks in the banking system by increasing regulatory capital up to EUR 25 million and revoking licenses of those who could not comply. In early 2015, nine banks did not comply with the new regulatory capital requirements. Some could raise additional funds to fulfil the requirement, however the National Banks’ policy aiming to reduce the number of banks in the banking system will persist. Such a policy will have no impact on the deposit market however it will increase competition on the labour market – among bank employees. In addition, enterprises, which have accounts in small banks, may transfer services to larger banks. In the future, only large banks would be able to penetrate the Belarusian market and preference will be given to banks with European capital.