Belarusian subsidiaries of Russian banks saw the increased activity of the Russians in the placement of foreign currency deposits. Deposits in Belarusian banks is attractive due to the relatively high local rates and insurance conditions: in case of Bank collapse, the Deposit will be returned fully, regardless of its size and in the currency in which it was made, the newspaper “Kommersant”.

So, according to “Alfa-Bank (Belarus)”, from November 2015 to January 2016 increase of deposits of customers-the Russians reached 17% against 9% for the previous nine months.

A similar situation is observed in other subsidiaries of Russian banks. In the “Belgazprombank” (subsidiary Bank of Gazprombank) the publication reported that the increase placed by the Russians of funds in the Bank for the last three months was 30% with a total portfolio growth for the Bank at 18%.

Growth of volumes of deposits from non-resident investors since the second half of 2015 confirmed in the “BPS-Sberbank” (subsidiary of Russian Sberbank). There signalled “modest growth on a constant basis since the second half of 2015.”

The maximum yield on deposits in dollars and Euro “Alfa-Bank (Belarus)”, “BPS-Sberbank”, VTB Bank (Belarus) and “Belgazprombank” at the moment is 5% for a two-year irrevocable deposits. In Russian parent banks on time deposits with a term of more than two years the maximum yield does not exceed 2.5%.

The choice in favor of “daughters” the Russian banking giants is understandable. Contribution to independent Belarusian Bank seems the Russians are more risky, concerning acceptance of the risks of the Belarusian economy, while the Russian “daughter” would be more credible.

An additional incentive was a local system of guaranteed compensation of deposits. Its main difference from Russia is the lack of limits of insurance (compensation may not exceed 1,4 million) and the payment of compensation in the Deposit currency (in Russia, the practice of forced conversion into rubles at the exchange rate on the date of revocation of Bank’s license).




Kommersant: Russian investors bringing dollars in Belarusian banks 25.02.2016

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