National Bank specifies foreign currency risks calculation in line with Basel provisions

The National Bank of Belarus has brought specifications into the regulations related to the order of defining the foreign currency risks. Here, as the information department of the National Bank told BelTA, the specialists used the provisions of the new Basel II agreement. According to the National Bank such an approach is based on the comprehensive assessment of risks related to banking guarantees and liabilities relating to provision of resources and the risks of clients failing to meet their liabilities before the financial establishment. Such deals enshrine a detailed analysis of the financial state of bank counteragents. The National Bank resolution #146 of October 5, 2005 introduced relevant amendments and addenda to instruction #92 of June 28, 2004 on economic norms for banks and non-banking financial organizations. The resolution will come into force on January 1, 2006. The amendments and addenda also present an alternative of banks using simplified approach to assessing foreign currency risks related to the liabilities undertaken by counterparties. Such a calculation model will help step up accuracy of risks assessment while carrying out off-balance transactions in foreign currency.