Joint World Bank/IMF Mission Concludes Its Work in Belarus

At the invitation of the National Bank and the Ministry of Finance of the Republic of Belarus, a joint IMF/World Bank Financial Sector Assessment Program (FSAP) Update mission visited Minsk during September 17–30, 2008. The team of experts headed by Mr. Michael Edwards, (World Bank) and Mr. Vassili Prokopenko (IMF) have met with a wide range of senior policy makers and market participants and discussed Belarus financial system stability and development needs.

Belarus FSAP update is a joint product of the World Bank and  the International Monetary Fund which focuses on, inter alia: (i) review of the progress made since the 2004 FSAP and update of the overall stability assessment; (ii) report on the observance of the Basel Core Principles for Effective Banking Supervision, in accordance with the 2006 methodology; and (iii) review of the state strategy for further development of the financial sector, including regulatory and supervisory regimes of the securities and insurance sectors, the accounting and auditing framework, and access to finance.

According to Michael Edwards, World Bank Lead Financial Sector Specialist and Task Team Leader for the Program, “The work was centered on assessments of the state’s role in the banking system, the regulatory and supervisory regime for the financial sector, the contingency framework, including deposit insurance, needed advances in the securities and insurance sectors, and impediments to access to finance. I would like to commend Belarussian counterparts for the high level of professionalism and the excellent cooperation demonstrated“

The team complimented the authorities for the progress since the 2004 FSAP in the technical, regulatory, and supervisory framework for the financial sector, but noted that a number of important improvements in practices and governance arrangements are necessary to bring Belarus closer to the international standards.

In the National Bank’s opinion, “The National Bank and the Government of the Republic of Belarus ensure development of the banking system with account of the best international practices. As part of the FSAP, foreign experts strengthen the analysis of the financial sector and focus on the problem issues that should be solved for the purpose of its further development. Therefore, joint efforts make it possible to tackle, in a more efficient way, the tasks aimed, above all, at maintaining financial stability in the Republic of Belarus and integrating the national banking sector into the global financial system.”

The team will continue its work with Belarusian counterparts over the coming months to take steps to strengthen the resilience of the financial sector. The findings of the FSAP update visit will be incorporated in the work of the ongoing IMF Article IV consultation mission.