Citizens of Belarus Increase Savings: Insights into Their Financial Choices
Belarusian banks are undergoing significant changes in their deposit policies and service conditions, primarily driven by regulatory and economic shifts. As of July 2025, these changes aim to encourage long-term savings in the national currency, as reported by the National Bank.
One of the key changes is the restriction on receiving deposits. Banks in Belarus are now prohibited from receiving deposits not only from natural persons and companies resident or established in Belarus but also from banks established in Belarus or controlled by Belarusian nationals or residents. This expansion aligns with the revised Belarus Ordinance related to EU and Swiss sanctions, aiming to restrict economic activities involving Belarusian financial institutions and entities.
Interest rates on fixed-term ruble deposits have also seen an increase. The average interest rate on these deposits rose by 1.4 percentage points to 10.8 percent in early 2025. However, the spread between deposit rates and loan rates has narrowed to about 1.1 percentage points, indicating a tightening margin for banks.
Commercial banks face mandates to increase investment lending by 16 percent, while consumer credit is restricted mainly to domestic goods. This shift towards state-directed economic priorities may affect deposit service conditions due to altered lending practices.
The impact of sanctions and ownership is also significant. Due to sanctions and ownership structures, a substantial portion of banking assets is held by Russian institutions, which are subject to similar lending targets and interest rate caps as Belarusian banks. This interplay influences banking policies, including deposits and credit availability.
These changes reflect a move towards tighter financial controls, influenced by geopolitical sanctions, state economic planning reminiscent of Soviet-era practices, and the challenges faced by banks in maintaining profitability under these constraints.
The growth in time deposits in Belarusian rubles has been observed over the month of May 2025. The total of time deposits in Belarusian rubles reached Br12.4 billion on June 1, 2025, marking a year-to-date increase. The share of time deposits in rubles among all time deposits of individuals reached 61.5% on June 1, 2025, a significant increase from 50.4% recorded a year earlier. The average interest rate on new time deposits in rubles was 12.7% per annum in May 2025. Since the beginning of the year, the volume of these deposits has increased by Br1.6 billion.
For more information about other changes prepared by Belarusian banks, a comprehensive review is available. Additionally, starting from July 1, social payments will be credited to special bank accounts, and some financial institutions have revised their tariffs and service conditions for individuals in July.
In response to regulatory and economic shifts, Belarusian banks have expanded the prohibition on receiving deposits to include institutions established or controlled by Belarusian nationals or residents, aiming to encourage long-term savings in the national currency. Additionally, due to changes in banking policies, the growth in time deposits in Belarusian rubles has been observed, with an increase in the average interest rate on new time deposits and a year-to-date increase in the total volume of these deposits.
