Population increasingly distrusts banking system

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April 22, 2016 19:05

During December 2014, Belarusian citizens cut their ruble savings within the national banking system by BYR 6.1 trillion or by 13.4%.

Siphoned-off funds went to the foreign currency market and did not return to banks in the form of the growth of foreign-currency deposits. Taking into consideration the rising rate of the Belarusian ruble in relation to the currency basket, one can expect a further fall in ruble bank deposits, while the lowering of interest rates may be stopped and borrowing costs for enterprises will continue to be prohibitive. The outflow of foreign currency deposits may lead to a ban on early terminations of foreign currency deposit contracts and a worsening situation on the currency exchange market.

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