THE RESTRUCTURING OF THE FINANCIAL SYSTEM IN BELARUS WITH SPECIAL CONSIDERATION TO THE BANKING SYSTEM

The paper examines the restructuring of the financial system in Belarus which began after the collapse of the Soviet Union. Special consideration is paid to the country’s banking sector. The authors present the Belarusian banking system at the beginning of transformation, the role and functions of the Belarusian central bank, the development of commercial banking in Belarus, the participation of foreign capital in the Belarusian banking system and the status and prospects for development of the banking system in the analyzed country. Basic information on the Belarusian insurance sector and capital market is also provided. The authors conclude that despite significant changes the Belarusian financial sector is still underdeveloped which is reflected, inter alia, in the low ratio of banking penetration in the Belarusian society, low ratio of insurance premiums to GDP, small and illiquid capital market.