There should not be a gap in profits between the banking and other economic sectors, Belarusian President Alexander Lukashenko said as he introduced Chairman of the Board of the National Bank of Belarus Pavel Kallaur to his office on 30 December, BelTA has learned.
Alexander Lukashenko demanded that the National Bank should pay attention to the profit margins and the prime cost of banking services, salaries and non-core assets of banks. “Banks should stop sheeting fat profits. Of course, our bankers do not live as large as their counterparts in the neighboring states. However, the banking industry posts much bigger profits compared to other economic sectors in Belarus. There should not be such a gap. The banking sector does not produce assets, it just services the real economy,” Alexander Lukashenko said. He instructed the National Bank to come to grips with this issue.
The head of state tasked the National Bank with increasing the efficiency of the banking system. Banks should attract additional financial resources into the banking system, so that they could provide loans to the real economic sector. “Banks should expand their operations on the international market and tap the debt market, no matter how hard or even impossible it might be,” Alexander Lukashenko emphasized. He added that banks should look for money the same way as exporters look for new sales markets. Belarusian banks with foreign capital should not wait for parent banks to give them money, but to be the first to enter foreign markets, Alexander Lukashenko added.
The President is in favor of direct investments into the banking sector and establishment of new banks both with Belarusian and foreign capital. “Let them compete and offer better loan terms. This matter should be under your control. The National Bank should keep track of everything. Our country is not that big, therefore we are quite capable of implementing the unified banking operation rules,” the President noted.
The head of state underlined that state-run banks should not be neglected. “However, they are “hand-fed” and keep hoping for government support. I have tougher requirements to them: banks should support the state, not vice versa, especially today. Therefore, it is necessary to sort things out with the state-run banks and improve their performance,” Alexander Lukashenko said.
Written by belta.by
