29 March 2024, Friday, 10:51
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Banks Are Near Miss

17
Banks Are Near Miss

The share of bad banks' assets hits all-time high again.

In October the share of bad assets increased again and followed the tendency broken in September.

As of November 1 it made all-time high 14.9% against 14.3% a month ago. According to statistics of the National Bank, in October the growth equaled to 231 million of denominated rubles.

Since the beginning of the year the volume of bad assets has grown in 2.2 times and reached 5.994 billion as of November 1.

BelTA informs referring to the head of the National Bank Pavel Kallaur that the share of bad assets of 16% is acceptable, its decrease is expected next year.

According to experts, the acceptable maximum of bad assets is 15-20%.

According to the National Bank 19% of banks' loan portfolio are owned by the government and local authorities.

In the beginning of the year on the IMF's recommendation the National Bank initiated the assessment of quality of assets of Belarusian banks. It was about an independent diagnosis of nine largest banks, tut.by reminds.

IMF experts drew attention to the need to deal with bad assets noting that the official volume of bad debts was understated, "if to consider the rejection to use of coercive measures, the practice of roll-over and low potential of repayment in the real sector, in particular at state-owned enterprises. Experts recommend taking a comprehensive approach along with reforms and directed lending reduction towards bad debts.

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