Banking System in Belarus
Belarus has a two-tier banking system: at one level is the National Bank of Belarus which acts as the country’s central bank and licenses the second tier of banks – the commercial banks. The law “On National Bank” and “On Banks and Banking” form the legislation framework for operation of a two-tier banking system in Belarus. The National Bank is in charge of regulating and coordinating monetary relations, stimulating the development of financial institutions, issuing money, and regulating foreign banking activity. Commercial banks effect active and passive banking operations at the cost of own and borrowed funds, keep free reserves on accounts with a National Bank, independently define the procedure of attracting and using resources.
World Bank, International Monetary Fund and European Bank for Reconstruction and Development opened their permanent mission in the early 1990’s. Twelve banks from Russia, Baltic States, Germany and Poland opened their representative offices in Belarus.
Belarusian and foreign companies and individuals have the right to open accounts in Belarusian roublesand other currencies with any bank of their choice. Major Belarusian banks, including Belarusbank, Belinvestbank, Belagroprombank, Belpromstroibank, Belvnesheconombank, Priorbank, provide their customers with the same spectrum of services as a prime bank in any other country. These services range from clean and documentary payments and commercial lending to trust, custodial and precious metal operations. Practically each Belarusian bank with general license is a member of S.W.I.F.T. and has Reuters Dealing system installed. This makes possible effecting settlements worldwide within a maximum of three banking days and to carry out transactions in international money, foreign exchange and securities markets. Payments in Belarusian roubles in the territory of Belarus are effected within one banking day.
Minsk Currency Exchange which daily fixes the exchange rates of USD, EURO, RU and some other currencies plays an important role in the financial market of the country. These rates are normally used by the National Bank to determine the official exchange rates for the following day. There is also over-the-counter currency market where both resident and non-resident companies and banks can buy and sell foreign exchange against local currency at a rate that differs from the official one.
IV. Look through the text and find English equivalents of the following words and word combinations:
банковская система, доверительный (счет), попечительский (счет), валютный курс, валютный рынок, рынок ценных бумаг, открыть счет, постоянное представительство, операции с драгоценными металлами, иностранная валюта, внебиржевой рынок, обеспечивать клиентов услугами, устанавливать курс валют, покупать и продавать иностранную валюту
V. Put 5 questions to the text and ask your groupmates to answer them.
VI. Give the main points of the text in 8-10 sentences.
VII. Compare the banking systems of the USA and Belarus.