OREANDA-NEWS. November 13, 2008. The National Bank of the Republic of Belarus (NBRB) is not going to introduce the amendments into the Banking Code regarding the abolishment of the right of depositors for early withdrawal of bank deposits, Sergei Dubkov, member of the Board of Directors of the National Bank, Head of the Central Banking Supervision Department, said at the third international conference “Retail banking: tendencies and prospects”.

The chairman of the Board of Directors of Belagroprombank Sergei Rumas said that when the financial markets are volatile the early withdrawal risks increase considerably. The situation at the end of 2006 – early 2007 and also October 2008 shows that the risks have increased dramatically. On some days the volume of bank deposits withdrawn ahead of schedule is very high,” he said. According to him, this can lead to negative consequences for the financial state of a bank.

Sergei Dubkov reminded, the right of depositors for early withdrawal of bank deposits is stipulated in the Banking Code. In accordance with the document, any citizen can withdraw his deposits within five days after he applies to the bank. He believes that if the corresponding article of the Banking Code is abolished it will mean that the crisis has affected the country’s banking system

“A corresponding decision can be generated from the point of view of economic theory. But it is quite complicated from the point of view of economic practice in a socially-oriented economy,” Sergei Dubkov said.

“Amending the relevant article of the Banking Code is unreal as the National Bank plans to introduce amendments into the Banking Code only in 2010-2011,” Sergei Dubkov said.

According to him, Belarus’ banking system has been working hard to win the trust of its depositors. Not long ago Belarus adopted a decree providing full bank deposit guarantees.

Before the end of the year the National Bank will considerably toughen the requirements to the regulatory capital of the banks including those who work with deposits of natural persons and will toughen the requirements to the banks in terms of the implementation of safety operation standards.

Sergei Dubkov said that so-called “bank run” can be organized with the help of the relevant information assistance at any bank. In the time of crisis such a threat exists for Belarusian banks as well.