Golovchenko: Q1 results indicate stable performance of Belarus’ banking system
07.05.2026
MINSK (
BelTA) – Belarus’ banking system operated stably in the first quarter of 2026, Chairman of the Board of the National Bank of Belarus Roman Golovchenko said at an expanded meeting of the National Bank Board, BelTA has learned.
“Assessing the key results of the first quarter, we can say that the banking system has been functioning steadily and is generally fulfilling the tasks assigned to it. Banks continue to steadily build up their long-term resource base. Demand for credit resources from households and the real sector is being fully met. Inflation is slowing down. Its annual dynamics are below the target trajectory. In January-March 2026, prices rose by 1.6 % against the upper threshold of 2.5 %,” Roman Golovchenko noted.
Core inflation amounted to 1.3 % against the target of 1.6 %.
“In annual terms, consumer price growth slowed to 5.4 % in March. Preliminary data for April confirm a stable trend toward further deceleration of inflationary processes, and there are all prerequisites for core inflation to be around 5 % by the end of the year, while overall inflation will remain below the target ceiling of 7 %,” the head of the National Bank said.
At the same time, Roman Golovchenko pointed to several trends causing concern. “In the first quarter, the economy showed a certain slowdown. For some macroeconomic indicators, the trajectory is below forecast levels. GDP inched down by 0.4 %, fixed-asset investment by 3 %. Construction and industry remain in a negative state. Wholesale trade decreased by 3.8 %, freight turnover by 1.5 %,” he said.
The National Bank is particularly concerned about the negative dynamics of fixed-asset investment and the declining share of investment in GDP. Roman Golovchenko stressed that bank lending was the only source that made a positive contribution to the growth of fixed-asset investment. The largest decline was observed in investment financed from companies’ own funds.
“In fact, in the first quarter, investment financing across the banking sector decreased by more than 4 %. This requires serious explanation, at the very least, given the resource potential available to banks,” he said.
The result was also influenced by last year’s high base, linked to the implementation of several major projects. Demand for investment has also decreased. “However, with an average of around Br2.5 billion in free liquidity in January-March, banks have sufficient reserves to strengthen support for the country’s investment development,” Roman Golovchenko noted.
He emphasized that banks should pursue a more proactive policy in this area. The existing surplus of free funds allows for reducing the cost of lending.
“At the same time, in practice we are seeing the opposite trend. In March 2026, average investment financing rates reached 10.7 % per annum, compared to 10 % in December 2025. This does not support investment activity. There are problematic issues not only in lending but also in other target indicators set in January of this year,” the bank’s head said.
The expanded meeting of the Board reviewed two issues: the results of monetary policy implementation in the first quarter and the fulfillment of the target indicators set for 2026.
“Assessing the key results of the first quarter, we can say that the banking system has been functioning steadily and is generally fulfilling the tasks assigned to it. Banks continue to steadily build up their long-term resource base. Demand for credit resources from households and the real sector is being fully met. Inflation is slowing down. Its annual dynamics are below the target trajectory. In January-March 2026, prices rose by 1.6 % against the upper threshold of 2.5 %,” Roman Golovchenko noted.
Core inflation amounted to 1.3 % against the target of 1.6 %.
“In annual terms, consumer price growth slowed to 5.4 % in March. Preliminary data for April confirm a stable trend toward further deceleration of inflationary processes, and there are all prerequisites for core inflation to be around 5 % by the end of the year, while overall inflation will remain below the target ceiling of 7 %,” the head of the National Bank said.
At the same time, Roman Golovchenko pointed to several trends causing concern. “In the first quarter, the economy showed a certain slowdown. For some macroeconomic indicators, the trajectory is below forecast levels. GDP inched down by 0.4 %, fixed-asset investment by 3 %. Construction and industry remain in a negative state. Wholesale trade decreased by 3.8 %, freight turnover by 1.5 %,” he said.
The National Bank is particularly concerned about the negative dynamics of fixed-asset investment and the declining share of investment in GDP. Roman Golovchenko stressed that bank lending was the only source that made a positive contribution to the growth of fixed-asset investment. The largest decline was observed in investment financed from companies’ own funds.
“In fact, in the first quarter, investment financing across the banking sector decreased by more than 4 %. This requires serious explanation, at the very least, given the resource potential available to banks,” he said.
The result was also influenced by last year’s high base, linked to the implementation of several major projects. Demand for investment has also decreased. “However, with an average of around Br2.5 billion in free liquidity in January-March, banks have sufficient reserves to strengthen support for the country’s investment development,” Roman Golovchenko noted.
He emphasized that banks should pursue a more proactive policy in this area. The existing surplus of free funds allows for reducing the cost of lending.
“At the same time, in practice we are seeing the opposite trend. In March 2026, average investment financing rates reached 10.7 % per annum, compared to 10 % in December 2025. This does not support investment activity. There are problematic issues not only in lending but also in other target indicators set in January of this year,” the bank’s head said.
The expanded meeting of the Board reviewed two issues: the results of monetary policy implementation in the first quarter and the fulfillment of the target indicators set for 2026.