Belarusian banks demonstrate an increasing interest in the exchange market of deposit auctions, Andrei Aukhimenya, Chairman of the Board of the Belarusian Currency and Stock Exchange (BCSE), reported.
The Chairman of the Board said: “Last week we launched the exchange market of deposit auctions. Several days of active trading demonstrated that banks were now fighting for their clients. On the first day four banks went to compete for the money of an insurance company. There were six banks on the second day. I think the trend will continue and the number of client banks on this market will rise.”
Andrei Aukhimenya added that there were plans to launch the exchange market of loans.
“It may happen this year or the next. Apart from that, a crowdfunding platform may be arranged. We may start financing venture companies,” he said.
The Belarusian Currency and Stock Exchange launched the exchange market of deposit auctions on March 21. According to Andrei Aukhimenya, the new mechanism is designed to reform the Belarusian financial market.
“It is not a highly specialized exchange product. We’ve made the first step to open the deposit market to an unlimited number of banks and an unlimited number of legal persons intent on saving their funds. In other words, our platform offers matchmaking opportunities to money sellers and money buyers. Instead of approaching every bank to find the best terms Belarusian companies will be able to contact the exchange where banks will compete for the client and offer the top interest rate,” he explained.
The Chairman of the Board of the Belarusian Currency and Stock Exchange pointed out that the exchange had polled Belarusian companies before introducing the new mechanism.
“We saw a strong interest in this product – about 85% of the polled companies showed an interest in depositing their money via the exchange in a bid to maximize profits. If a company entrusts a bank with its money, the interest rate is set by the bank. If the money is deposited via the exchange, the interest rate will be set after an auction of 27 banks unless the company decides to limit their number,” remarked Andrei Aukhimenya. (BelTA/Business World Magazine)
