Financial Stability. November 2022

Financial stability risks persist in Belarus: the financial system has suspended the initial shock

The value of the Financial Stress Index (FSI) for Belarus increased on average in Q2-2022. The level of financial stress can be characterized as increased, but not classified as financial instability (Table 1). The key contributor to the FSI value growth in Q2-2022 was the Banking Sector Fragility (BSF). Nonetheless, the index was decreasing in the last month of the quarter. This is due to the fact that the first shock from the war and the sanctions that followed it has passed, and their impact has begun to smooth out also because of some positive shocks inter alia.