National Bank measures to reduce consumer lending lower banking sector profits

Data on banks’ profits in H1 2014 recorded a decrease in net profits equivalent of USD 311.8 million, or 17.2%, compared with H1 2013.

The decline is due to the changed game rules on the consumer lending market, which have resulted in banks’ lower profitability. The banking sector is expected to adjust the number of employees, reduce advertising costs, reduce interest rates on deposits, slowdown network expansion, and smaller banks might experience mergers and purchases. Due to sanctions on Russian banks, their profitability in Belarus may fall, and customers fearing for their assets might shift to Belarusian banks.