Banking in the Republic of Belarus

Read the text and point out differences and similarities of the banking system of the Republic of Belarus with those of the USA.

The banking system of Belarus is a two-tier system consisting of the National Bank of the Republic of Belarus and of commercial banks. The National Bank is a state agency which is independent of the government and which reports to the President of Belarus. It does not only regulate the functioning of commercial banks by decree, but also holds stakes in some banking institutions.

The main objectives of the National Bank are protecting the Belarusian rouble and ensuring its stability, developing and strengthening the banking system of the Republic of Belarus and ensuring efficient, reliable, and secure functioning of the payment system.

The National Bank performs a set of functions. It shall:

– develop the Republic of Belarus Monetary Policy Guidelines;

– issue money and National Bank securities;

– regulate money circulation;

– regulate credit relations;

– act as the lender of last resort;

– carry out foreign exchange regulation;

– serve as a central depositary of government and National Bank securities.

The second tier of the banking system is represented by commercial banks through which the monetary policy of Belarus is implemented. According to the current legislation the commercial banks enjoy a high degree of independence in choosing the main spheres of their activities. As regards their form, the commercial banks may be both state-owned and non-state banks set up by founders (legal and physical persons) on a share or contribution basis.

Banks operating in Belarus fall into two categories. The first one consists of six major banks, five of which were established on the basis of pre-existing Soviet banks: BelarusBank, Belagroprombank, Belinvestbank, Belpromstroybank, Belvneshekonombank and PriorBank, the largest privately-owned banking institution. These banks finance state programs and account for about 90% of all assets in the Belarusian banking sector. So Belarus can be classified as a country with a high share of concentration of banking capital in the group of leading banks. By this indicator Belarus corresponds approximately to such countries as Sweden, the Netherlands, Finland, and Greece.

All Belarusian banks are universal, i. e., they can make profit by rendering services to their clients and by conducting investment operations. The major part of income of the Belarusian banks is comprised of credit services. The largest Belarusian banks are not distinguished by the types of activity and their profits are rather balanced in nature. However, there are some financial institutions among small and medium banks, whose activities may be considered as highly specialized. The banks with a prevailing share of service fee profits are the International Trade and Investments Bank, Trustbank, the Reconversion and Development Bank, the Belarusian Industrial Bank, Absolutbank, Sombelbank. Another group of banks specializes in currency exchange operations. These are Technobank, BelSwissbank, Golden Taler, International Reserves Bank.

In February 1993 Belarus set up the Inter-Bank Currency Exchange which is the main instrument of the legal currency market. The trades are performed in four main currencies: US dollar, Euro, Russian ruble and Ukrainian grivna. The National Bank established the official exchange rate of the Belarusian rouble in relation to the US dollar and the Russian rouble twice a week, on Tuesday and Thursday, on the basis of the auction results. The exchange rates for other currencies are set through computations using the exchange rate of the US dollar at the main currency exchanges of the world. At present the country possesses a large network of offices for the exchange of cash currency.

Ex. 1. Match the Russian word combinations with their English equivalents.

Ex. 2. Answer the questions:

1. What are the main objectives of the National Bank of Belarus?

2. What basic functions does the National Bank perform?

3. What two types of commercial banks are there in Belarus?

4. In what way are the commercial banks of Belarus different from those in the USA?

5. What do some of Belarusian banks specialize in?

6. What countries are the key investors in the Belarusian banking system?

7. What is the Inter-Bank Currency Exchange and how does it operate?

WRITING

While reading the text, focus on basic types of occupations in a banking sector. Use an example below to write a want ad for vacancies in a new branch of bank.

Banks employ various types of financial and customer service occupations. Office and administrative support occupations make up the largest portion of jobs in the industry, while management, business, and financial occupations also employ a significant number of employees in the banking industry.

Office and administrative support occupations. These occupations account for 64 percent of jobs in the banking industry. Bank tellers (cashiers), the largest occupation, provide routine financial services to the public. They handle customers’ deposits and withdrawals, change money, sell money orders and traveler’s checks, and accept payment for loans. Tellers also sell bank services to customers. New accounts clerks and customer service representatives answer questions from customers, and help them open and close accounts and apply for banking services. They are knowledgeable about a broad array of bank services and must be able to sell those services to potential clients.

Loan and credit clerks assemble and prepare paperwork, process applications, and complete the documentation after a loan or line of credit has been approved. Bill and account collectors attempt to collect payments on overdue loans. Many general office clerks and bookkeeping, accounting, and auditing clerks are employed to maintain financial records, enter data, and process the thousands of deposit slips, checks, and other documents that banks handle daily. Banks also employ many secretaries, data entry and information processing workers, receptionists, and other office and administrative support workers. Office and administrative support worker supervisors and managers oversee the activities and training of workers in the various administrative support occupations.

Management, business, and financial occupations. These occupations account for about 25 percent of employment in the banking industry. Financial managers direct bank branches and departments, resolve customers’ problems, ensure that standards of service are maintained, and administer the institutions’ operations and investments. Loan officers evaluate loan applications, determine an applicant’s ability to repay a loan, and recommend approval of loans. They usually specialize in commercial, consumer, or mortgage lending. Loan officers also play a major role in bringing in new business and spend much of their time developing relationships with potential customers. Trust officers manage a variety of assets that were placed in trust with the bank for other people or organizations. Sometimes, trust officers act as executors of estates upon a person’s death.

Securities, commodities, and financial services sales agents, who make up the majority of sales positions in banks, sell banking and investing services. They contact potential customers to explain their services and to ascertain the customer’s banking and other financial needs. They also may discuss services, such as deposit accounts, lines of credit, sales or inventory financing, certificates of deposit, cash management, stock investments, or investment services. At most small and medium-size banks, however, branch managers and commercial loan officers are responsible for marketing the bank’s financial services.

Other occupations. Occupations used widely by banks to maintain financial records and ensure the bank’s compliance with Federal and State regulations are accountants and auditors, and lawyers.

TRANSLATION

Translate into Russian.

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